India’s rupee touched the highest level in almost a week on optimism European leaders will agree today on measures to stem contagion in European bond markets, bolstering demand for emerging-market assets. The Bombay Stock Exchange’s Sensitive Index advanced after German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed on a joint position on Greece’s debt situation, before a meeting in Brussels today. Most Asian currencies strengthened as the Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-traded currencies excluding the yen, reached a 14-year high. “A positive outcome in Europe will lead to an overall global bullish sentiment, and this will help the rupee,” said Naveen Raghuvanshi, a Mumbai-based currency trader at Development Credit Bank Ltd. The rupee was little changed at 44.4763 per dollar as of 9:34 a.m. in Mumbai, according to data compiled by Bloomberg. It touched 44.4350 earlier, the strongest level since July 14. Offshore forwards indicate the rupee will trade at 44.97 in three months, compared with expectations of 44.99 yesterday. 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 on this story: Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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