Rupee firms to over 3-week high; yields little changed

The Indian rupee firmed to a more than three-week high on Monday as the greenback languished on bets the U.S. Federal Reserve would scale back its pace of rate hikes as the world's biggest economy stares at a possible recession.

The partially convertible rupee was trading around 79.15 per dollar in early morning trade, its strongest since July 7, compared to a close of 79.25 on Friday.

India's 10-year government bond yields were little changed at 7.2983% after dropping by 9 basis points last week to 7.3196%.

Markets now look towards the Reserve Bank of India's monetary policy decision on Friday where a 35-50 point basis point rate hike was expected.