Rupee Rebounds From 3-Week Low as Share Sale Seen Drawing Fundsby
The rupee rebounded from a three-week low on speculation an initial share sale by India’s biggest private-sector life insurer attracted inflows.
The 60.6-billion rupee ($905 million) initial public offering by ICICI Prudential Life Insurance Co. drew orders of more than 6.5 times the amount of stock for sale, data from the National Stock Exchange of India Ltd. showed Wednesday afternoon. That helped the rupee overcome the weakness seen earlier in the day, according to Dhanlaxmi Bank Ltd.
The local currency ended little changed at 67.0225 per dollar in Mumbai, after weakening earlier to 67.1350, the lowest level since Aug. 29, prices from local banks compiled by Bloomberg show. The early declines were caused by a pickup in the government’s dollar purchases, traders said.
“The rupee cut losses on account of the potential inflows from the ongoing share sale,” said Arnab Sardar, a currency trader at Dhanlaxmi Bank in Mumbai.
Sovereign bonds rose, with the yield on notes maturing in September 2026 falling four basis points, the most in two weeks, to 6.85 percent, according to prices from the central bank’s trading system.