By Anoop Agrawal and Anil Varma Nov. 5 (Bloomberg) -- India's rupee climbed to a one-month high after overseas investors increased holdings of local equities for a second straight day. The currency advanced for a sixth day, its best run in a year, on optimism U.S. president-elect Barack Obama will bolster measures to overcome a recession in the world's biggest economy. The Bombay Stock Exchange Sensitive Index has rebounded 19 percent from a three-year low reached on Oct. 27, while the stock market regulator said global investors purchased a net $482.1 million of Indian shares on Oct. 31 and Nov. 3. ``The optimism among investors is beginning to settle deeper as reflected by the equity markets,'' said P.V. Rao, a currency trader at IndusInd Bank Ltd. in Mumbai. ``We will see very soon a return of investments into India which will benefit the rupee.'' The rupee gained 0.6 percent to 47.435 per dollar at the 5 p.m. close in Mumbai, the strongest since Oct. 3, according to data compiled by Bloomberg. It touched 46.73 in intraday trading. The currency touched a record low of 50.29 on Oct. 27 as the global financial crisis nudged the U.S. and Europe toward a recession, causing foreign investors to flee riskier emerging markets. Obama's Victory Asian stocks gained as Obama's victory in the U.S. presidential elections sparked optimism his spending plans will help ease the global credit crisis. The MSCI Asia-Pacific Index of stocks rose 4.6 percent, its third daily gain. India's Prime Minister Manmohan Singh sought to strengthen ties with the next administration after President George W. Bush pushed for the successful conclusion of a civilian nuclear energy agreement between the two nations. The currency pared gains after the benchmark Indian equity index declined today. The Sensitive Index declined 4.8 percent today, ending a five-day advance. Offshore forward contracts show traders have pared bets for how much they predict the rupee will depreciate over the next month, showing an implied rate of 47.88 a dollar compared with 48.13 yesterday. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Indian rupee forwards traded overseas are non-deliverable, meaning they are settled in dollars rather than the local currency. To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.

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