There’s no stopping the rupee. Strategists say Asia’s best-performing currency of the past six months could climb further as the Reserve Bank of India’s interest-rate cut lures more inflows into local shares.
Benchmark borrowing costs in Asia’s third-largest economy stand at the lowest since 2010, which could spur growth, boost earnings and encourage foreigners to add to $8.8 billion of local stock purchases this year. The rupee reached a two-year high after the RBI’s decision Wednesday, and Bloomberg Intelligence predicts the currency to further strengthen to 61 per dollar by March next year.
