“The rupee’s bias is clearly upward,” said Sudarshan Bhatt, chief currency trader at state-owned Corporation Bank in Mumbai. “Markets are rallying globally, showing the Fed’s bond purchase announcement has boosted investor confidence.”Mumbai: The rupee strengthened the most in four months on speculation the US Federal Reserve’s plan to buy $1 trillion (Rs50.8 trillion) of bonds will drive interest rates lower, boosting demand for higher-yielding assets.
The currency climbed to a three-week high versus the dollar as the Bombay Stock Exchange’s benchmark index, the Sensex, closed above 9,000 for the first time in a month.
The currency climbed to a three-week high versus the dollar as the Bombay Stock Exchange’s benchmark index, the Sensex, closed above 9,000 for the first time in a month.
The rupee also gained on optimism economic stimulus measures unveiled by the government and central bank in recent months will help revive growth. The government has announced additional spending while the Reserve Bank of India has cut interest rates five times since September.
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