By Anil Varma Sept. 23 (Bloomberg) -- India’s rupee rose to the strongest level in more than six weeks after overseas investors boosted their holdings of the nation’s stocks, taking net purchases for the year above $10 billion. The currency climbed for a sixth day after exchange data showed global funds bought $1.4 billion more local equities than they sold last week, the most in nearly two years. Money is pouring in after the nation’s economic growth accelerated to 6.1 percent in the quarter ended June 30, a pace of expansion that’s second only to China in Asia. The Asian Development Bank yesterday raised its 2009 growth forecast for the region, excluding Japan, to 3.9 percent from 3.4 percent. “The rupee looks set to strengthen further as capital inflows are swelling and the economic picture is brightening,” said Sudarshan Bhatt, chief currency trader at state-owned Corporation Bank in Mumbai. “The trend mostly mirrors what’s happening across Asian markets.” The rupee rose 0.1 percent to 47.905 per dollar, as of 10:25 a.m. in Mumbai, according to data compiled by Bloomberg. It earlier reached 47.865, the strongest level since Aug. 10, and Bhatt said it may reached 47.20 in the coming days. Offshore contracts indicate bets the rupee will trade at 47.89 per dollar in a month, compared with expectations of 48.03 yesterday. 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. Funds based abroad have bought Indian equities worth a net $10.1 billion this year, boosting their holdings to $65.4 billion, according to the Securities and Exchange Board of India.

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