The rupee gained for a fifth day, its longest winning streak in eight weeks, after a report predicted the nation?s benchmark stock index will advance. It strengthened 0.5%to 44.84 on Wednesday. It reached 44.77 earlier, the strongest level since May 12. The currency has advanced in each except one of the last five years. ?There have been some inflows? into stocks, said J. Moses Harding, a Mumbai-based executive vice president at IndusInd Bank. ?The currency?s strong track record of appreciation in recent years will help attract investors.?
The 10-year bonds rose for a third day on speculation slowing economic growth will prompt the central bank to cool the pace of interest-rate increases.
?Investors are probably betting slower growth may help temper rate increases,? said Roy Paul, a deputy general manager in charge of bonds and currency at Federal Bank. The yield on the 7.8%note due April 2021 fell nine basis points, or 0.09 percentage point, to 8.33% on Wednesday. It touched 8.46% last week, the highest level since October 2008. The Reserve Bank of India is scheduled to review borrowing costs next on June 16. The cost of one-year interest-rate swaps, fell five basis pointsto 8.13%. The overnight call money rate moved in a range of 7.40% and 7.25 % before settling up at 7.40%.