India’s Rupee Has Best Week in Two Months on Inflow Optimism

India’s rupee completed its biggest weekly gain since January on speculation foreign investors will boost purchases of the nation’s assets to benefit from relatively stronger growth and returns.

The European Central Bank kept its benchmark rate at a record low yesterday and Federal Reserve Vice Chairman Janet Yellen said March 4 the U.S. central bank should press on with $85 billion of monthly debt purchases that depress yields. Morgan Stanley is bullish on the rupee and predicts India’s economy will expand 6.3 percent in the year through March 2014, following estimated growth of around 5 percent in the current period, as the government looks to attract foreign investment and improve public finances.