MUMBAI : Indian rupee strengthened against the US dollar on Monday for fifth day in a row tracking gains in Asian peers amid optimism that the phase one trade deal between the US and China will be signed this week.

Rupee closed at 70.86 a dollar, up 0.12% from Friday's close of 70.94. The Indian unit had opened and touched a high of 70.79.

The yield on the 10-year government bond was at 6.598% compared with its previous close of 6.588%.

Year-to-date, the rupee has strengthened 0.74%, while foreign investors have bought $ 363.1 million in Indian equities and sold $938.4 million in debt.

Benchmark index, Sensex index gained 0.62%, or 259.97 points, at 41859.69 points. Year-to-date, the index has gained 1.47%.

Asian currencies closed higher. Indonesian rupiah was up 0.72%, South Korean won 0.45%, China Renminbi 0.39%, China Offshore 0.34%, Malaysian ringgit 0.33%, Philippines peso 0.32%, Taiwan dollar 0.24%, Thai baht and Singapore dollar gained 0.09% respectively. However, Japanese yen lost 0.36% and Hong Kong dollar 0.1%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.488 up 0.14% from previous close of 97.356.

(Bloomberg contributed this story)

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