MUMBAI: The rupee is expected to inch nearer to a 9-½ year high on Wednesday, backed by expected strong capital inflows into the stock market after concerns eased that proposed regulations would limit foreign investment.
The partially convertible rupee ended at 39.59/60 per dollar on Tuesday, 0.75 percent above Monday's close of 39.89/90 -- its largest daily gain since Oct. 3 taking it back towards a 9-½ year high of 39.27 hit earlier this month.
The main share index posted its biggest gain in 16 months on hopes of increased foreign buying after the market regulator had said on Monday it would speed up clearance procedures for foreign investors.
The Securities and Exchange Board of India is proposing curbs on investment instruments known as Participatory Notes, or P-Notes, which it says allow foreigners to make a backdoor entry into the market without registering with Indian authorities. It said this was to make fund inflows transparent, not ban them.
The SEBI board meets on Thursday.
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