Re at 1-month high on Obama victory

The rupee climbed to a one-month high after overseas investors increased holdings of local equities for a second straight day.

The currency advanced for a sixth day, its best run in a year, on optimism US president-elect Barack Obama will bolster measures to overcome a recession in the world’s biggest economy. The BSE Sensitive Index has rebounded 19 per cent from a three-year low reached on October 27, while the stock market regulator said global investors purchased a net $482.1 million of Indian shares on October 31 and November 3.

“The optimism among investors is beginning to settle deeper as reflected by the equity markets,’’ said P.V. Rao, a currency trader at IndusInd Bank in Mumbai. “We will see very soon a return of investments into India which will benefit the rupee.’’

 

The rupee gained 0.6 per cent to 47.435 per dollar at the 5 pm close in Mumbai, the strongest since October 3. It touched 46.73 in intraday trading. The currency touched a record low of 50.29 on October 27 as the global financial crisis nudged the US and Europe toward a recession, causing foreign investors to flee riskier emerging markets.