The Indian rupee on Friday strengthened marginally against US dollar tracking gains in Asian peers. At 9.03 am, the rupee traded at 70.11 a dollar compared with its previous close of 70.26. The Indian currency had opened at 70.14 a dollar.

The 10-year bond yield traded at 7.451% compared with Thursday's close of 7.446%.

Meanwhile, according to a Reserve Bank of India circular foreign portfolio investors are now permitted to invest in municipal bonds to boost access of non–resident investors to debt instruments in India.

So far this year, the rupee has weakened 0.7% against the US dollar, while foreign investors have bought $9.32 billion in equity and $11.6 million in debt market.

India's benchmark Sensex Index rose 0.24% to 38822.16 points in pre-open trade. Year to date, it is up 7.38%.

Other Asian currencies were mostly trading higher against US dollar. China Offshore was up 0.18%, China renminbi rose 0.14%, Malaysian ringgit was up 0.14%, Thai Baht was 0.12% higher, Singapore dollar was up 0.1%, and Philippines peso rose 0.07%. However, South Korean won was down 0.05%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.147, a tad lower from its previous close of 98.203.

(Bloomberg contributed this story)