Mumbai: India's rupee rose toward a one-month high before a report that economists predict will show factory output in Asia's third-largest economy rebounded. Industrial production climbed five per cent in October from a year earlier, after contracting 0.4 per cent the previous month, according to the median of 30 estimates in a Bloomberg News survey before data due on December 12.
Factory output in China gained the most in eight months in November, adding to signs the outlook for regional economies is improving. India also reports trade and inflation numbers this week. "Industrial output growth is likely to return to positive territory," Dariusz Kowalczyk, a senior strategist at Credit Agricole CIB in Hong Kong, wrote in a research report yesterday. "While the trade gap will remain close to record highs, overall, the numbers will be positive for the rupee."
The currency ended little changed from December 7 at 54.5050 per dollar in Mumbai, according to data compiled by Bloomberg. The rupee had earlier advanced as much as 0.4 per cent to 54.2550.