The Indian rupee on Monday strengthened to three week high against US dollar tracking gains in local equity and Asian currencies market.

At 9.06 am, the rupee traded at 69.47 a dollar, up 0.29% from its previous close of 69.67. The Indian currency opened at 69.50 a dollar.

Local equity markets trading higher on expectations that the strong mandate for the Bharatiya Janata Party will help the new government at the centre to pursue bold reforms to revive the economy.

The 10-year bond yield was at 7.226% compared with Friday's close of 7.225%. Bond yields and prices move in opposite directions.

Benchmark Sensex index was up 0.1% at 39,478.66 points. Year to date, the index has risen 9.33%.

So far this year, the rupee has risen 0.5% against the US greenback. During the period, foreign investors bought $9.62 billion in Indian equities and sold $531.20 million in debt market.

Asian currencies were trading higher after US President Donald Trump indicated he was not in a rush to finalize a trade deal with Japan.

South Korean won was up 0.38%, Indonesian rupiah 0.28%, Taiwan dollar 0.21%, Thai Baht 0.18%, Philippines peso 0.16%, China Offshore 0.15%, Singapore dollar 0.13%, China renminbi 0.1%. However, Japanese yen was down 0.15%.

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 97.576, down 0.04% from its previous close of 97.613.

(Bloomberg contributed this story)


Close