Rupee Forwards Rise From Two-Month Low on Global Stimulus Bets

India’s rupee forwards extended a rebound from a two-month low on speculation policy makers in the U.S. and Japan will maintain economic stimulus policies that have boosted capital flows into emerging markets.

The currency gained for a second day as India scrapped a proposal to tighten rules for overseas investors seeking to benefit from double taxation treaties. The Bank of Japan must expand its monetary base and buy bonds with maturities of more than five years, Kikuo Iwata, a government nominee for deputy governor, said in a parliament hearing today. Federal Reserve Vice Chairman Janet Yellen said yesterday the U.S. central bank should press on with $85 billion in monthly debt buying while tracking possible costs and risks from the program.