India’s Rupee Advances to 59.6937 per Dollar

India’s rupee rallied the most in more than six weeks on optimism the government will unveil measures in the budget next week to boost the economy.

Prime Minister Narendra Modi’s first budget since taking office, to be presented July 10, will outline steps to revive economic growth from near a decade low, according to Barclays Plc. Global investors purchased $37.8 million more Indian shares than they sold on June 27, taking 2014’s net inflows to $9.9 billion. The rupee rose for a second day as the S&P BSE Sensex of local shares advanced 1.3 percent to a record.

The “budget is likely to deliver meaningful policies that support the rupee and further foreign portfolio inflows,” Hamish Pepper, a Singapore-based currency strategist at Barclays, wrote in a research note today. “We expect a credible roadmap toward medium-term fiscal consolidation to be announced, important for continued bond purchases by foreign investors and the rupee support.”

Bloomberg

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