The Indian rupee on Monday strengthened against the US dollar ahead of consumer price inflation data due this week. At 2 pm, rupee was trading at 71.21 a dollar, up 0.15% from its previous close of 71.31. The currency opened at 71.26 a dollar, touching a high 71.14 and a low 71.29.

January CPI and December industrial production data are due on Tuesday.

The 10-year bond yield stood at 7.346%, as compared to its Friday’s close of 7.335%. Bond yields and prices move in opposite direction. Bond rally was capped despite the surprise interest rate cut from RBI last week, as supply concerns remain.

So far this year, the rupee has weakened 2% against the US dollar while foreign investors have bought $ 277.5 million and sold $ 743.4 million in equity and debt markets, respectively.

Most Asian currencies were trading lower against US dollar. Indonesian Rupiah lost 0.563%, China renminbi 0.522%, Japanese Yen 0.264%, Philippine Peso 0.117%, China Offshore 0.088% Singapore Dollar 0.081%, South Korean Won 0.080%, Taiwan Dollar 0.039% and Hong Kong Dollar 0.003%. However, Thai Baht gained 0.178% and Malaysian Ringgit 0.007%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.739, up 0.11% from its previous close of 96.637.