Re continues to gain as stocks lure funds

Re continues to gain as stocks lure funds

Mumbai: The rupee rose to the highest in more than nine years on speculation that the benchmark stock index Sensex’s advance to a record will attract foreign investors.

Overseas funds have bought more stocks than they sold for 13 days through 9 October, the longest buying spree in almost three months, helping the rupee rise to the strongest since February 1998. Industrial production growth probably accelerated for the first time in five months in August, economists forecast a report will show on Friday.

The rupee rose to 39.3035 against the dollar at the 5pm close in Mumbai, from 39.315 on Wednesday, according to data compiled by Bloomberg.

But the rupee’s gains may be moderated by speculation the Reserve Bank of India will buy dollars to curb the local currency’s rally and protect export earnings. Bloomberg