By Anil Varma May 10 (Bloomberg) -- India’s rupee jumped the most since October as policy makers in Europe pledged almost $1 trillion in loans to ease a debt crisis, encouraging investors to return to emerging-market assets. The currency rose for the first time in six days as stocks and currencies rallied across Asia. Investors should buy the rupee against the dollar and the euro using non-deliverable forward contracts that mature in three months to gain from India’s improving economy, foreign-exchange strategists at Standard Chartered Plc wrote in a research note today. India’s economic growth “is second only to China’s in Asia and should continue to attract capital inflows,” wrote Priyanka Chakravarty and Thomas Harr as Standard Chartered based in Mumbai and Singapore, respectively. “The rupee is likely to benefit from the European Union’s emergency fund.” The currency strengthened as much as 1.2 percent to 44.9450 per dollar before trading at 45.01 as of 10:26 a.m. in Mumbai, according to data compiled by Bloomberg. The rupee was little changed at 58.20 per euro. Offshore forwards signaled traders pared bets for the rupee’s weakness. The contracts signal the currency will trade at 45.20 to the dollar in three months, compared with expectations of 45.78 at the end of last week. 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 MSCI Asia-Pacific Index of regional shares climbed 1.2 percent, and the Bombay Stock Exchange’s Sensitive Index advanced 1.5 percent. --Editors: Ven Ram, Sandy Hendry %INR RBI@IN To contact the reporters on this story: Anil Varma in Mumbai at avarma3@bloomberg.net. To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

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