 "Rupee")
Government bonds and the rupee strengthened sharply on Tuesday as optimism over the prospect of Indian sovereign debt being included in a global bond index spurred hefty overseas investment in domestic assets, dealers said.
The rise in bond prices came despite an increase in India’s consumer price index inflation, which strengthens the case for the Reserve Bank of India to continue tightening monetary policy.
A sharp decline in the dollar index in anticipation of falling US inflation also bolstered the domestic currency, which racked up its largest single-day gain since July 27.
Yield on the 10-year benchmark bond settled
