Rupee rose the most in two weeks on speculation RBI would raise borrowing costs for a third time this year to curb inflation, making local assets more attractive to investors seeking higher yields.
The currency strengthened for a third day as a government report today showed inflation unexpectedly accelerated in May.
The rupee climbed 0.75 per cent, the most since May 28, to 46.49 a dollar as of the 5:00 pm close in Mumbai. That pared its losses for this quarter to 3.4 per cent, still the second-worst performance among Asian currencies, after South Korea’s won.
