Oct. 12 (Bloomberg) -- India’s rupee gained the most in more than two weeks after the nation’s second-largest software exporter reported profit that beat analysts’ estimates.
The currency rebounded from a one-week low as the BSE India Sensitive Index gained 2.6 percent. Infosys Ltd. said net income was 19.1 billion rupees ($390 million) last quarter, compared with a median forecast of analysts in a Bloomberg survey for 18.7 billion rupees. The rupee fell earlier on concern Europe’s debt problems will damp demand for emerging-market assets.
“On one hand, we have news such as that from Infosys which suggests exports and the economy may not perform as badly as some believe, and on the other, the European problems are not yet gone,” said Krishnamurthy Harihar, treasurer at FirstRand Ltd. in Mumbai. “The rupee will likely stay in a range until we have stronger cues.”
The rupee strengthened 0.8 percent to 48.96 per dollar in Mumbai, according to data compiled by Bloomberg, the biggest advance since Sept. 27. It dropped to 49.4750 earlier, the weakest level since Oct. 5.
Slovakia’s parliament failed to ratify changes to a bailout fund for the euro region in a vote yesterday. European officials are striving to meet an end-of-month target set by French President Nicolas Sarkozy to get to grips with a crisis that’s propelled Greece to the brink of default and shaken global financial markets.
India’s industrial production rose 4.1 percent in August from a year earlier, government data showed today, less than the median estimate of 20 economists in a Bloomberg News survey for a 4.7 percent gain. The nation’s merchandise export growth slowed for the second straight month, Commerce Secretary Rahul Khullar said today.
Offshore forwards indicate the rupee will trade at 49.61 to the dollar in three months, compared with expectations for a rate of 49.97 yesterday. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
--Editor: Anil Varma
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