Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

India’s Rupee Advances as Foreign Investors Buy Corporate Bonds

Don't Miss Out —
Follow us on:

Feb. 28 (Bloomberg) -- India’s rupee strengthened after overseas funds stepped up purchases of local-currency company bonds to meet a quota deadline.

The Securities & Exchange Board of India auctioned $5 billion of corporate debt-purchase quotas on Nov. 30 to foreigners, who must use the allocations by the end of today or let them expire. Foreign investors added $898 million to holdings of Indian debt last week, exchange data show, following net sales of $275 million in the previous period.

“Inflows are supporting the rupee as today is the deadline for the transactions,” said Vikas Babu, a currency trader at state-owned Andhra Bank in Mumbai. “We will also see month-end demand for dollars from importers.”

The rupee advanced 0.3 percent to 49.0775 per dollar in Mumbai, according to data compiled by Bloomberg. The currency has strengthened 8.1 percent this year.

Three-month onshore forward contracts traded at 50.14 a dollar, compared with 50.31 yesterday, while non-deliverable contracts traded at 50.18 from 50.36 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.

To contact the reporter on this story: Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.