Indian rupee and bonds rise, trading resumes after ceasefire with Pakistan.

The Indian rupee has seen its biggest increase in nearly two weeks, with Indian bonds also rising. With the support of a ceasefire agreement with Pakistan, India has ended a long weekend and resumed trading. On Tuesday, the Indian rupee rose by 0.9% against the US dollar to 84.6362 rupees per dollar, and the 10-year government bond yield fell by 4 basis points to 6.34%. The local bond and foreign exchange markets were closed on Monday for a public holiday. The escalating tensions between the two neighboring nuclear-armed countries have hurt the Indian rupee. Due to the inflow of foreign funds, the Indian rupee has recently reached an eight-month high. The easing of geopolitical risks may pave the way for a rebound in demand for the country's assets. Wee Khoon Chong, senior Asia-Pacific market strategist at a New York bank in Hong Kong, said, "After strong selling in the first quarter, we see momentum for further inflows into the stock market, which may provide support for the rupee."