Rupee resumed trading on a firm note and was last quoting at 70.82 per US dollar against its previous session's close of 70.90.
In the bond market, as expectations of rate cut in Friday's MPC get more pronounced, there has been seen to decline to one-month low.
The growth concerns which saw the June quarter growth plunge to a six-year low at 5% and the subdued inflationary level is most likely to prompt the government to cut key policy rates.
Meanwhile, equities also gained ground on the back of global cues. Wall Street gains on weak services data which raises expectations of a further rate cut this year.