Rupee hits 4-month high, bonds gain after state election results

Last Updated: Mon, Dec 09, 2013 07:29 hrs
Cashier counts currency notes inside bank in Lucknow

The rupee and bonds rallied on Monday after the country's main opposition party, BJP, which is widely seen by investors as being more business friendly, performed well in state elections.

The centre-left party's main opponent, the Hindu nationalist Bharatiya Janata Party (BJP), was the clear winner in three big states that went to the polls according to results on Sunday, with the count close in a fourth.

The partially convertible rupee was trading at 61.04/05 per dollar at 0913 IST (0343 GMT), after hitting as high as 60.84 to the dollar at the open, its strongest level since August 12. It had closed Friday at 61.41/42.

The benchmark 10-year bond yields fell 4 basis points to 8.81 percent.

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