The local currency strengthened as much as 0.8% to 49.195 a dollar before trading at 49.22.
The Indian Rupee and the S&P CNX Nifty Index futures rose to three-week highs after RBI cut interest rates for the third time in less than two months.
The Government also unveiled the much-awaited fiscal stimulus package over the weekend to bolster economc growth. The Government will spend an extra Rs200bn for the year ending March 31 after the RBI cut rates by 1%.
The rupee gained 0.8%, Nifty futures for December delivery increased 4.4%, while the benchmark 10-year bond yield hovered at the lowest level in almost four years. The local currency strengthened as much as 0.8% to 49.195 a dollar before trading at 49.22.
