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imageMUMBAI: The Indian rupee and government bonds rallied on Monday in line with global stocks and debt prices after the news that Lawrence Summers had dropped from the race to head the Federal Reserve promised to prolong the lifetime of super-easy money.

The partially convertible rupee was trading at 62.55/56 per dollar at 0907 India time (0337 GMT), its strongest since Aug. 19 and sharply above its close of 63.49/50 on Friday.

The benchmark 10-year bond yield was trading down 9 basis points at 8.40 percent.

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