BLBG: Indian Rupee Gains Most in 2 Weeks as Rising Profits Lure Funds
By Anil Varma
Oct. 30 (Bloomberg) -- India’s rupee gained the most in more than two weeks, paring a weekly loss, on speculation rising corporate earnings will attract more investment from abroad.
The currency rose for a second day after Mahindra & Mahindra Ltd., India’s largest maker of sport-utility vehicles and tractors, and Oil & Natural Gas Corp., India’s biggest explorer, reported profit that surpassed analyst estimates. Nine of the 10 most-traded Asian currencies outside of Japan advanced as the MSCI Asia Pacific Index of regional shares added 1.8 percent.
“The rupee is strengthening as stocks are expected to show a healthier trend, reflecting the rising economic optimism,” said Sanjay Arya, a treasurer at state-owned Bank of Maharashtra in Mumbai.
The rupee climbed 0.7 percent to 46.9025 per dollar as of 9:51 a.m. in Mumbai, according to data compiled by Bloomberg. That boosted its gains this month to 2.6 percent, the best performance among Asian currencies.
Offshore contracts indicate bets the rupee will trade at 46.97 to the dollar in a month, compared with expectations of 47.28 yesterday. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non- deliverable contracts are settled in dollars.
