By Anoop Agrawal Nov. 3 (Bloomberg) -- India's rupee rose for a fourth day, its longest winning streak in almost three months, as investors bet central bank's surprise interest-rate cut on the weekend will support growth in Asia's third-largest economy. The rupee gained after the Reserve Bank of India on Nov. 1 cut its repurchase rate by half a percentage point to 7.5 percent and freed up funds by lowering the amount banks must set aside to cover deposits. Central banks from the U.S. to Europe and Japan are seeking to avoid a global recession after more than $11 trillion was wiped of stock-market values worldwide last month. ``The measures are an appropriate response to the developing global situation and domestic growth considerations,'' said Sanjay Arya, a treasurer at state-owned Bank of Maharashtra. ``The rupee should increase the pace of its appreciation.'' The rupee climbed 1.2 percent to 48.89 a dollar as of 9:15 a.m. in Mumbai, according to data compiled by Bloomberg. The currency has recovered 2.8 percent from an all-time low of 50.29 touched on Oct. 27. It has dropped 19.5 percent this year against the dollar, the second-worst performer after the South Korean won of the 10 most-active Asian currencies outside Japan, as funds based abroad sold a record $12.8 billion more local assets than they bought. The central bank on Oct. 24 reduced its forecast for growth in Asia's third-largest economy to as slow as 7.5 percent from 8 percent in the year to March 31. To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.

Source