India’s rupee strengthened after overseas funds increased purchases of Indian shares last week. The currency extended its biggest weekly advance of the year as regional stock gains suggested global funds’ risk appetite is building. Mark Mobius, who helps oversee $20 billion of emerging-markets assets at Templeton Asset Management Ltd., said in a Bloomberg Television interview that the next “bull- market” equities rally has begun. “The rupee is stronger because Asian stock markets are higher, raising optimism about better capital inflows,” said Roy Paul, assistant manager of treasury at Federal Bank Ltd. in Mumbai. The rupee rose 0.3 percent to 50.48 per dollar as of 10:05 a.m. in Mumbai, paring its decline for the year to 3.6 percent, according to data compiled by Bloomberg. The currency gained 1.7 percent in the five days ended March 20, when it touched this month’s high of 50.03. Funds based abroad bought $233 million more Indian stocks more than they sold last week, the highest net purchases so far this year, according to data released by the Securities and Exchange Board of India. The Bombay Stock Exchange’s Sensitive Index rose 1.9 percent today, headed for its highest close in five weeks, and the MSCI Asia Pacific Index added 3.3 percent. Offshore contracts indicate traders bet the rupee will trade at 50.97 to the dollar in a month, compared with expectations of 51.07 on March 20. 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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