Rupee Only Asia Currency to Gain in Month of Sweeping Losses

India’s rupee is the only currency in Asia to strengthen amid this month’s rout in risk assets, thanks to a spree of share-sale offers that are luring foreign investors, Bloomberg News reported. The rupee has advanced 1.3% in March, boosted by $2.9 billion of overseas purchases of local stocks, including inflows related to initial public offerings. Nine share-sale offers worth about 59 billion rupees ($813 million) this month would have added to one of the highest inflows into emerging Asia, according to Emkay Global Financial Services Ltd. The prospect of an economic recovery, a rare current-account surplus and foreign-exchange reserves approaching $600 billion have put India in a strong position to ward off the impact of the U.S. Treasury-led selloff that’s roiled global risk assets. India has got about $8 billion of inflows into stocks this year. State-run companies raising dollar loans worth more than $1 billion in March, and the central bank tolerating gains, as opposed to its preference for a weaker currency until a few months ago, have also boosted the currency’s appeal. Read more.

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