India’s rupee strengthened the most in two weeks on optimism European leaders will agree on measures to contain their region’s debt crisis at meetings this week. Luxembourg Prime Minister Jean-Claude Juncker, the head of the euro-area group of finance ministers, visits Greece tomorrow to discuss its debt program. German Chancellor Angela Merkel and French President Francois Hollande meet in Berlin on Aug. 23 and both are set to talk separately with Greek Prime Minister Antonis Samaras later in the week. The rupee touched a one-week high on speculation a scheduled auction of debt-purchase permits to overseas funds today will help spur fund flows to India. “The global risk-on phase and ample liquidity have been aiding the rupee,� Pramit Brahmbhatt, Mumbai-based chief executive officer of Alpari Financial Services India Pvt. wrote in a research report today. The rupee advanced 0.3 percent from Aug. 17 to 55.5750 per dollar in Mumbai, the biggest gain since Aug. 7, according to data compiled by Bloomberg. It touched 55.4550 earlier, the strongest level since Aug. 13. The market was shut yesterday for a local holiday. One-month implied volatility, a measure of exchange-rate swings used to price options, fell 15 basis points, or 0.15 percentage point, to 10.15 percent. Three-month onshore rupee forwards traded at 56.54 per dollar, compared with 56.75 on Aug. 17, and offshore non- deliverable contracts were at 56.49 from 56.71 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: James Regan at jregan19@bloomberg.net

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