India’s rupee advanced for a fifth day, its longest winning streak in almost two months, as stock gains fueled optimism foreign funds will return to buy the nation’s assets. The local currency touched a three-week high as the latest data provided by the stock market regulator showed purchases of Indian shares by overseas investors exceeded sales for the first time in five days on Feb. 5. The benchmark Bombay Stock Exchange Sensitive Index climbed for a second day, rising 1.3 percent. “Investors are looking at Indian assets more favorably than before as markets have stabilized and there are no apparent risks,” said Sudarshan Bhatt, chief currency trader at state- owned Corporation Bank in Mumbai. The rupee gained 0.2 percent to 48.60 a dollar as of 10:26 a.m. in Mumbai, according to data compiled by Bloomberg. The currency may rise to 47.90 in two weeks, Bhatt said. The median estimate in a Bloomberg survey of 26 analysts is for the rupee to appreciate to 47.95 by the end of the year. Offshore contracts indicate traders bet the rupee will trade at 48.61 to the dollar in a month, compared with expectations for a rate of 48.81 on Feb. 6. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency.

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