Business | Markets
Rupee gains in India as stocks rise
India's rupee rose for a second day as steps by Asian countries to ease the global cash squeeze buoyed stocks and spurred optimism demand for riskier emerging-market assets will increase.
- Bloomberg
- Published: 23:43 October 29, 2008
Mumbai: India's rupee rose for a second day as steps by Asian countries to ease the global cash squeeze buoyed stocks and spurred optimism demand for riskier emerging-market assets will increase.
The currency has rebounded almost one per cent from a record low of 50.29 a dollar touched two days ago. The MSCI Asia Pacific Index of stocks climbed 3.7 per cent on speculation Japan will cut interest rates and China will make efforts to boost local shares to revive confidence in financial markets.
"Authorities world over are taking effective steps to avoid fears of recession and equity markets are responding positively," said Jayant Chiney, a treasurer at state-owned Bank of India in Mumbai. "The rupee will be supported in the near term."
The rupee rose 0.4 per cent to 49.675 per dollar at close in Mumbai, from 49.8575 on October 27. The currency was not traded on Tuesday.
The rupee pared gains on speculation that importers, including Indian Oil Corp, the nation's largest refiner, purchased dollars at a cheaper rate after the local currency rebounded from an all-time low.
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