India’s rupee advanced for a second day on speculation U.S. policy makers’ efforts to spur the world’s largest economy will help boost global growth.
The rupee extended its rebound from a three-month low after Federal Reserve Chairman Ben S. Bernanke said yesterday that he’s prepared to do more to stimulate American growth if needed. International investors poured $8.8 billion into Indian equities this year, almost eight times the inflows a year earlier, exchange data show.
“Growth of the U.S. economy will spur investor confidence across the globe,” said Vikas Babu, a currency trader at state-run Andhra Bank in Mumbai. “India and the rupee will benefit because economic growth will boost fundamentals and encourage investments in emerging markets as well.”
The rupee advanced 0.2 percent to 51.44 per dollar as of 9:35 a.m. in Mumbai, according to data compiled by Bloomberg. The currency may advance to 52.30 this week, Babu forecast.
The Fed said the U.S. economy will grow 2.4 percent to 2.9 percent in 2012, from a previous prediction of 2.2 percent to 2.7 percent. South Korea’s gross domestic product rose 0.9 percent in the first quarter from the previous three months, when it gained 0.3 percent, the Bank of Korea said today.
Three-month offshore non-deliverable forward contracts traded at 53.65 a dollar, compared with 53.76 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.