India’s rupee advanced, snapping a three-day decline, as increases in U.S. corporate profits fueled optimism the global economic recovery is on track, boosting demand for emerging-market assets.
The rupee strengthened the most in a week as the MSCI Asia Pacific Index of regional shares advanced 0.2 percent. Overseas investors bought $1.8 billion more Indian shares than they sold this month as U.S. companies, including Apple Inc. and Ford Motor Co., reported earnings that beat analysts’ estimates.
“There’s more optimism across the world’s financial markets as the U.S. corporate results have been good and that’s a good sign for the global economy,” said Vikas Babu, a currency trader at Andhra Bank in Mumbai. “Capital flows have been strong and that’s the main support for the rupee.”
The Indian currency strengthened 0.2 percent to 44.44 per dollar as of the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. That bolstered the rupee’s gain this month to 0.3 percent, still the third-worst performance among the 10 most-traded Asian currencies excluding the yen.
Offshore forwards indicate the rupee will trade at 45.19 to the dollar in three months, compared with expectations of 45.25 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
Source: http://www.bloomberg.com
The rupee strengthened the most in a week as the MSCI Asia Pacific Index of regional shares advanced 0.2 percent. Overseas investors bought $1.8 billion more Indian shares than they sold this month as U.S. companies, including Apple Inc. and Ford Motor Co., reported earnings that beat analysts’ estimates.
“There’s more optimism across the world’s financial markets as the U.S. corporate results have been good and that’s a good sign for the global economy,” said Vikas Babu, a currency trader at Andhra Bank in Mumbai. “Capital flows have been strong and that’s the main support for the rupee.”
The Indian currency strengthened 0.2 percent to 44.44 per dollar as of the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. That bolstered the rupee’s gain this month to 0.3 percent, still the third-worst performance among the 10 most-traded Asian currencies excluding the yen.
Offshore forwards indicate the rupee will trade at 45.19 to the dollar in three months, compared with expectations of 45.25 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
Source: http://www.bloomberg.com
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