Rupee Rises to Three-Week High as Yields Shine on Fed Pullback
- Reserve Bank of India expected to keep rates on hold Tuesday
- Pimco, Aberdeen favor local assets on attractive carry, yields
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India’s rupee rose to its strongest in almost three weeks on optimism investors will be lured to bond yields that are among the highest in Asia as speculation builds that the U.S. will delay raising interest rates after jobs growth weakened.
The currency climbed for a third day before the Reserve Bank of India’s meeting on Tuesday, when Governor Raghuram Rajan is forecast to keep borrowing costs on hold after reducing them to the lowest level in five years in April. The fastest growth among major economies along with reduced volatility in the rupee is improving confidence in India. Pacific Investment Management Co. and Aberdeen Asset Management Plc said in the past month they favor investments in the country.