Weakness of dollar in the overseas market also boosted the rupee value against the dollar.
India Ratings on Monday said the rupee has outperformed most of its peers in the emerging economies and the trend is likely to continue as the chances of US Fed raising interest rate in December are bleak.
"Ind-Ra opines that with the chances of US Fed increasing rates moving down, the emerging market currencies including rupee to trade firm...While the rupee has outperformed most other emerging market currencies, Ind-Ra expects the trend to continue," the domestic ratings agency said.
Ind-Ra said it believes that with limits opened up on central and state government bonds, the corporate space will see marginal under performance with absolute yields likely to stay soft.
Corporate bond investment limit (INR2,443bn) for FPIs is utilised to the extent of 77 per cent. AAA-rated public sector bonds in the 10-year segment saw the yields trading in the range of 8.12 per cent-8.18 per cent compared with previous week's 8.35 per cent-8.40 per cent.
The rupee on Monday surged by another 22 paise to close at a seven-week high of 65.29 per dollar on persistent selling of the American currency by banks and exporters amid strengthening equities.
Weakness of dollar in the overseas market also boosted the rupee value against the dollar.
