Nov. 9 (Bloomberg) -- India’s rupee rose for a fourth day, its best winning streak in a month, on speculation the nation’s improving economy will attract more investment from abroad.

The currency climbed to a two-week high after Prime Minister Manmohan Singh said the economy is recovering from a slump. Overseas investors bought $14.2 billion more Indian shares than they sold this year through Nov. 6, after record net sales of $9.5 billion in 2008, according to data from the stock market regulator.

“Investors are more optimistic, with a view that the worst is behind, and they have positive developments to look forward to,” said Sudarshan Bhatt, chief currency trader at state-owned Corporation Bank in Mumbai. “The rupee will accelerate its pace of gains in the near term.”

The rupee advanced 0.6 percent to 46.55 per dollar as of 9:40 a.m. in Mumbai, according to data compiled by Bloomberg. The currency reached 46.53, the highest level since Oct. 26.

India may be among the first Group of 20 nations to begin winding back fiscal stimulus after Singh said faster economic growth would allow the measures to be withdrawn.

“There are clear signs of an upturn in the economy,” Singh told the India Economic Summit organized by the World Economic Forum yesterday. “Like other countries we resorted to significant stimulus and we will take appropriate action next year to wind this down.”

The Reserve Bank of India, the nation’s central bank, last month began to tighten monetary policy amid concern a pickup in inflation would worsen conditions for the close to 800 million Indians that live on less than $2 a day.

Offshore contracts indicate bets the rupee will trade at 46.49 against the dollar in a month, compared with expectations of 46.79 at the end of last week. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are settled in dollars rather than the local currency.

To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net

Last Updated: November 8, 2009 23:27 EST