Mumbai: India's rupee rose the most in six weeks on speculation a slowing inflation measure that excludes food will allow the central bank to reduce interest rates next week, spurring buying of the nation's stocks.
The Reserve Bank of India will lower its repurchase rate by 25 basis points to 7.50 per cent at a March 19 review, according to 25 of 28 economists in a survey. Three predict no change. Core wholesale prices advanced 3.8 per cent in February after a 4.1 per cent increase in January, according to a government report published
The rupee advanced 0.6 per cent to 54.03 per dollar in Mumbai, the biggest gain since January 30, according to data. This takes the week's gain to 0.5 per cent. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, fell four basis points, or 0.04 percentage point, to 9.01 per cent. The rate dropped 17 basis points this week.