BLBG:Indian Rupee Touches One-Week High as Greek Vote May Spur Flows
India’s rupee rose to a one-week high after Greek Prime Minister George Papandreou won a vote of confidence, tempering concern over Europe’s debt crisis and boosting demand for emerging-market assets.
The currency gained for a second day as the MSCI Asia- Pacific Index of shares rose 0.8 percent. Papandreou won a vote of confidence from 155 out of 300 Greek lawmakers and needs parliamentary approval next week for a 78 billion-euro ($112 billion) package of budget cuts to avoid a debt default.
“The latest news that has come in on Greece is relatively positive and that’s expected to provide some support to the financial market,” said Sudarshan Bhatt, chief currency trader at Corporation Bank in Mumbai. “The rupee may gradually move up from these levels.”
The rupee gained as much as 0.1 percent to 44.82 per dollar before trading little changed at 44.845 as of 10:15 a.m. in Mumbai, according to data compiled by Bloomberg. The currency may trade between 44.70 and 45.10 this week, Bhatt predicted.
Offshore forwards indicate the rupee will trade at 45.44 in three months, compared with yesterday’s expectations for 45.47. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
To contact the reporter responsible for this story: Anil Varma at avarma3@bloomberg.net
To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net
