BLBG: Indian Rupee Advances as Stock Gains May Attract Foreign Funds
India’s rupee rose for the first time in three days on speculation stock gains will attract overseas funds to the nation’s assets.
The local currency climbed from a one-month low after the benchmark Bombay Stock Exchange Sensitive Index jumped 2.3 percent, snapping a four-day loss. Equity gains may lure back foreigners, who this month sold more Indian shares than they bought. The MSCI Asia Pacific Index of shares rose 1.2 percent.
“The advances in Asian equities is pushing the demand for the local currency and that may continue in the short-term,” said Sudarshan Bhatt, chief currency trader at state-owned Corporation Bank in Mumbai.
The rupee rose 0.7 percent to 48.765 per dollar as of 10:31 a.m. in Mumbai, according to data compiled by Bloomberg. It may touch 48.5 this week, Bhatt said.
To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.
