India’s rupee rose, snapping five quarters of losses, as the prime minister’s re-election for a second term boosted investor optimism that economic progress will be sustained.
The currency gained almost 6 per cent against the dollar this quarter and analysts in a Bloomberg News survey are betting the rupee will add another 2.4 per cent by the end of the year. The rupee advanced 0.4 per cent to 47.905 a dollar at the 5 pm close in Mumbai. It last posted a winning quarter in the period ended December 2007 and for this period, it's the third-best performing among the 10 most-active Asian currencies after the rupiah and South Korean's won.
Indian bonds fall on concern govt will raise debt target
India’s five-year bonds fell for the first time in six days on speculation the government will raise its debt-sale target for this fiscal year in the budget scheduled to be unveiled July 6.
Benchmark notes completed a monthly decline after Goldman Sachs Group Inc said June 26 the nation’s budget gap will reach 6.5 per cent of gross domestic product(GDP), the most in 19 years, as it borrows more to boost spending on infrastructure and poverty- alleviation projects.