The rupee rose to the highest level in two weeks after stronger-than-expected manufacturing growth in the US and China bolstered demand for riskier assets, helping emerging markets attract funds. The currency advanced 0.3 per cent to 50.72 per dollar in Mumbai. It touched 50.52 earlier, the strongest level since March 21. The currency fell 3.6 per cent last month, the first decline in 2012.
The currency extended this year’s advance to 4.6 per cent as the Bombay Stock Exchange India Sensitive Index of shares gained a third day. The US Institute for Supply Management said yesterday its index of manufacturing climbed to 53.4 last month from 52.4 in February, beating the median estimate of 53 in a Bloomberg News survey.
Call rate tumble
The overnight call money rate, after end of financial year 2011-12, dived to end at 8.8 per cent from 15 per cent last Friday. It moved in a range of 9.5 per cent and 8.5 per cent.
