Capital Inflows Bolster Indian Rupee

The Indian rupee, together with other Asian currencies, rose today on the speculation that the increasing capital inflows from the global funds in the region’s economy would allow the Asian countries to profit from Asia’s fast economic growth.

The rupee also gained after the Indian government allowed the foreign investors to double the holdings of the government bonds to $10 billion and increased the cap on investment in the corporate debt by the third to $20 billion. This measure may help India to decrease the nation’s growing current account deficit of $13 billion.

USD/INR fell from 45.475 to 45.310 as of 9:41 GMT today after it reached the intraday high of 45.660 and the intraday low of 45.250.

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