India’s Rupee Advances Most in a Week as Exporters Sell Dollars
India’s rupee gained the most in a week on speculation exporters converted overseas earnings and after global funds pumped money into local stocks.
The currency strengthened a second day after overseas investors bought $1.1 billion more Indian shares than they sold this month through Jan. 7, adding to net purchases of $24.5 billion in 2012, exchange data show.
The rupee advanced 0.5 percent to 54.7550 per dollar in Mumbai, according to data compiled by Bloomberg.
Exporters looked to sell the greenback around 55.10 rupees amid “consistent demand for dollars from oil importers,” said Sudarshan Bhatt, chief currency trader at state-run Corporation Bank in Mumbai.
One-month implied volatility in the rupee, a gauge of expected moves in exchange rates used to price options, rose 14 basis points, or 0.14 percentage point, to 9.76 percent.
Three-month onshore rupee forwards traded at 55.82 per dollar, compared with 56.01 yesterday, according to data compiled by Bloomberg. Offshore non-deliverable contracts were at 55.78 versus 55.98. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
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