India’s rupee completed its biggest weekly gain in two months on speculation Asia’s second-fastest growing major economy will draw investors to new share offerings by local companies.
Overseas investors bought $416 million of Indian equities this week, taking purchases this year to a record $29.1 billion, according to the Securities & Exchange Board of India. The currency reached the highest in two weeks against the dollar today as the nation’s benchmark stock index rallied.
“Share sales are boosting the rupee,” said Naveen Raghuvanshi, a currency trader at Development Credit Bank Ltd. in Mumbai. “I see the rupee holding around 45 to the dollar.”
The Indian currency climbed 1.6 percent this week to 45.11 against the greenback as of the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. The rupee earlier reached 45.0550, the highest level since Nov. 19. It climbed to its best week since Oct. 1.
Shipping Corp. of India Ltd., the country’s biggest sea carrier, and the government may raise $240 million in a share offering that opened on Nov. 30, Chairman S. Hajara said Nov. 26. A sale by MOIL Ltd., India’s largest producer of manganese ore, closed on Dec. 1 with bids for 56 times the 33.6 million shares offered, according to the National Stock Exchange.
Asia’s third-largest economy expanded 8.9 percent last quarter from a year earlier, matching the pace during the previous three months and beating analysts’ estimates in a Bloomberg survey for 8.2 percent growth.
Offshore forwards indicate the rupee will trade at 45.72 to the dollar in three months, compared with expectations of 46.06 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.