Economics
Rupee Rises to Three-Month High on Optimism Inflows Will Climb
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India’s rupee rose to the highest level since October on optimism the first interest-rate cut by the central bank in nine months will spur economic growth, attracting investors.
The Reserve Bank of India lowered its benchmark repurchase rate to 7.75 percent from 8 percent yesterday, and said cooling inflation will give some room to ease monetary policy further. Global funds poured $4 billion into local bonds and stocks this month through Jan. 28, boosting debt holdings to an all-time high of $33.5 billion, exchange data show. The government’s 10-year bonds yield 7.89 percent, while similar-maturity U.S. Treasuries pay 2 percent.