Re rebounds from 5-yr low as stocks rise

Re rebounds from 5-yr low as stocks rise

Mumbai: The rupee gained the most in more than a week, rebounding from a five-year low touched in intra-day trading, as gains in the benchmark share index tempered concerns capital outflows will increase.

The currency snapped a five-day decline as equities advanced across Asia, stoking optimism investors won’t increase sales of the region’s assets. The rupee also rose as exporters took advantage of earlier declines to boost profits by converting overseas earnings into local currency. A weaker rupee boosts the value of foreign-exchange earnings.

The rupee climbed 0.8% to 46.63 per dollar at close in Mumbai. It fell as low as 47.23 in intra-day trading, the lowest since May 2003.

The currency may rise as high as 46 in the coming days, said Vikas Babu, a currency trader at Andhra Bank.

The Bombay Stock Exchange’s Sensex index rose 1.5% on Wednesday, adding to Tuesday’s 2.1% gain. The index has lost 36% this year.