India’s rupee rose the most in more than six weeks as easing risk aversion among global funds bolstered demand for the nation’s assets. The currency rallied for a third day and Asian equities gained after data from the U.S. showed sales of existing homes posted the first back-to-back gain in almost a year and construction spending ended a six-month slide, adding to evidence the world’s biggest economy is on the mend. India’s benchmark share index has rebounded almost 50 percent from a three-year low reached on March 9. “The positive sentiment in the stock market is helping the rupee strengthen, raising optimism about capital inflows,” said Roy Paul, assistant manager of treasury at Federal Bank Ltd. in Mumbai. The rupee rose 1.3 percent to 49.285 per dollar as of the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. That is the biggest gain since March 19. The currency added 2.6 percent this quarter. Offshore contracts indicate bets the rupee will trade at 49.33 to the dollar in a month, compared with expectations for 49.98 yesterday. 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. The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 6.4 percent yesterday, the most since Oct. 31. It was little changed today as the MSCI AC Asia Pacific excluding Japan Index rose 0.7 percent. Global investors bought local shares worth $1.64 billion more than they sold in April, according to data released by the Securities and Exchange Board of India. Overseas funds were net buyers on all but two of the 17 trading days last month.

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