India's rupee gains on fund inflow talk

Mumbai: India's rupee rose on speculation an improving economy will attract overseas capital as US policy makers prepare to discuss debt purchases that may boost fund flows to Asia's third-biggest economy.

The Dollar Index traded on ICE Futures in New York slid as much as 1.2 per cent on Monday on speculation the Federal Reserve will boost bond purchases beyond the $600 billion (Dh2.2 trillion) already announced.

"The rupee has gained from the dollar's broad weakness, driven by expectations that fund flows to emerging markets will improve," said Roy Paul, Mumbai-based deputy general manager at Federal Bank Ltd. "India's growth story remains intact."

The rupee gained 0.3 per cent to 44.99 per dollar in Mumbai. It strengthened to as much as 44.94 earlier in the day.