10:52 AM
alphaadvisory
India’s rupee climbed to the highest
level in more than three months on optimism the nation’s largest
state asset sale in a year will attract foreign capital.
Ministers yesterday approved an offering of government shares worth 120 billion rupees ($2.3 billion) in NTPC Ltd., India’s biggest power producer, Disinvestment Secretary Ravi Mathur said in New Delhi today. The sale will open tomorrow, he said. Global funds poured $4.7 billion into Indian stocks this year, exchange data show. Rupee gains will be limited by dollar demand from refiners, according to Andhra Bank.
“Inflows will continue,” said Vikas Babu, a foreign- exchange trader in Mumbai at the state-owned lender. “The currency could strengthen more in the coming weeks, though we will see importers coming in and buying dollars.”
The rupee advanced 0.2 percent to 53.0250 per dollar as of 9:42 a.m. in Mumbai, according to data compiled by Bloomberg. It touched 52.8900 earlier, the strongest level since Oct. 17. One- month implied volatility, a gauge of expected exchange-rate swings used to price options, rose four basis points, or 0.04 percentage point, to 9.51 percent.
India plans to offer shares in four more state companies by March 31, including Steel Authority of India Ltd. and National Aluminium Co. The government raised 31.4 billion rupees last week by selling 10 percent in the explorer Oil India Ltd.
Three-month onshore rupee forwards traded at 54.04 per dollar, compared with 54.13 yesterday, according to data compiled by Bloomberg. Offshore non-deliverable contracts were at 53.85 versus 53.97. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
Ministers yesterday approved an offering of government shares worth 120 billion rupees ($2.3 billion) in NTPC Ltd., India’s biggest power producer, Disinvestment Secretary Ravi Mathur said in New Delhi today. The sale will open tomorrow, he said. Global funds poured $4.7 billion into Indian stocks this year, exchange data show. Rupee gains will be limited by dollar demand from refiners, according to Andhra Bank.
“Inflows will continue,” said Vikas Babu, a foreign- exchange trader in Mumbai at the state-owned lender. “The currency could strengthen more in the coming weeks, though we will see importers coming in and buying dollars.”
The rupee advanced 0.2 percent to 53.0250 per dollar as of 9:42 a.m. in Mumbai, according to data compiled by Bloomberg. It touched 52.8900 earlier, the strongest level since Oct. 17. One- month implied volatility, a gauge of expected exchange-rate swings used to price options, rose four basis points, or 0.04 percentage point, to 9.51 percent.
India plans to offer shares in four more state companies by March 31, including Steel Authority of India Ltd. and National Aluminium Co. The government raised 31.4 billion rupees last week by selling 10 percent in the explorer Oil India Ltd.
Three-month onshore rupee forwards traded at 54.04 per dollar, compared with 54.13 yesterday, according to data compiled by Bloomberg. Offshore non-deliverable contracts were at 53.85 versus 53.97. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
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