India’s rupee completed its first weekly advance since October after joint efforts by central banks to tackle Europe’s debt crisis bolstered sentiment toward emerging-market assets. The currency rebounded from last week’s record low as six monetary authorities led by the U.S. Federal Reserve agreed this week to lower the interest rate on dollar-liquidity swap lines. The rupee gained for a second day after global investors bought $27 million more Indian shares than they sold on Nov. 30, according to exchange data. “Sentiment has improved slightly after the central banks’ actions,� said Vikas Babu, a Mumbai-based currency trader at state-owned Andhra Bank. “This is unlikely to last long as only the symptoms of the crisis are being tackled, and I expect dollar-buying to resume soon.� The rupee advanced 2.1 percent this week and 0.5 percent today to 51.2063 per dollar in Mumbai, according to data compiled by Bloomberg. The currency slumped to a record 52.73 on Nov. 22. The premium banks pay to borrow dollars overnight from central banks will fall by half a percentage point to 50 basis points, the Fed said. It coordinated the move with the European Central Bank and monetary authorities in Canada, Switzerland, Japan and the U.K. Three-month offshore rupee forwards traded at 52.16 to the dollar, compared with 52.29 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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