The Indian rupee gained by 40 paise in the early trade on Monday. It has opened at 62.10 per dollar against 62.50 Tuesday.
The dollar drops, after a dismal US jobs report pushed up US treasury yields as investors pared bets the Federal Reserve would hike interest rates anytime soon.
The yield on benchmark 10-year treasury notes, which moves inversely to prices, hit nearly two-month lows of 1.8 percent on Friday.
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Agam Gupta of Standard Chartered said, "“We expect demand from the local government banks to come in at 62/dollar and see a range of 61.90-62.40/dollar for the day.”
“Uptick towards 62.30/dollar will see exporter selling. The RBI monetary policy tomorrow will be keenly awaited and will give further direction to the markets," he added.
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