Mumbai: India's rupee rose the most in a month as Moody's Investors Service maintained its stable outlook on the nation's investment-grade credit rating. The rupee gained 0.5 per cent, the biggest gain since October 22, to 55.4550 per dollar in Mumbai, according to data. It touched 55.8825 on Monday, the weakest level since September 6.
The currency halted a five-day slide after Moody's said India's Baa3 ranking is supported by economic growth and investment that's more than emerging-market averages. Exporters also probably sold dollars taking advantage of the currency's decline to a three-month low yesterday, according to Krishnamoorthy Harihar, treasurer at FirstRand, the Indian unit of South Africa's second-largest financial-services company.
"The sentiment toward the rupee was helped a little by the news from Moody's," said Mumbai-based Harihar. "It remains to be seen whether the gains can be held given fiscal concerns and other fundamental weaknesses." One-month implied volatility, a measure of expected moves in exchangerates used to price options was unchanged at 9.5 per cent.