BLBG: Indian Rupee Set for Best Week Since 1998 as Funds Buy Stocks
By Anoop Agrawal
Nov. 7 (Bloomberg) -- India's rupee was set for its best week in more than a decade on signs overseas investors are returning to buy local equities after the benchmark stock index reached a three-year low on Oct. 27.
The local currency extended last week's advance as data from the stock market regulator showed foreign funds bought $543 million more Indian shares than they sold in the four trading days through Nov. 4. The Bombay Stock Exchange Sensitive Index has rebounded 14 percent since Oct. 27, according to data compiled by Bloomberg.
``The outlook for equities is much better than what it was at the peak of the global credit crisis,'' said K.V. Mallik, treasurer at state-owned UCO Bank in Kolkata. ``The climate for investments will improve soon and will help the rupee.''
The rupee climbed 3.6 percent this week to 47.745 a dollar as of 10:26 in Mumbai, according to data compiled by Bloomberg. That is biggest weekly gain since January 1998. Mallik didn't give a forecast.
To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.
