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Oct. 12 (Bloomberg) -- India’s rupee rebounded from a one- week low after the nation’s second-largest software exporter reported profit that beat analysts’ estimates.
The currency rose for the fourth time in five days as the BSE India Sensitive Index gained 1.2 percent. Infosys Ltd. said net income was 19.1 billion rupees ($387 million) last quarter, compared with a median forecast of 35 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 0.2 percent to 49.2325 per dollar as of 11:01 a.m. in Mumbai, according to data compiled by Bloomberg. It dropped to 49.4750 earlier, the weakest level since Oct. 5. FirstRand’s Harihar expects the currency to trade between 49.00 and 49.50 in the coming weeks.
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.
Offshore forwards indicate the rupee will trade at 49.87 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.
--Editors: Anil Varma, James Regan
To contact the reporter on this story: Jeanette Rodrigues in Mumbai at Jrodrigues26@bloomberg.net
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