India rupee rises on hope of fund flows

India's rupee strengthened the most in two months after the Federal Reserve signalled it will keep US borrowing costs near zero, boosting demand for higher- yielding assets. The currency headed for its first quarterly gain in a year after Fed Chairman Ben S. Bernanke said continued monetary stimulus will be needed to bolster employment in the US. "The overnight news will benefit Asian currencies in the very near term," said Nick Verdi, a currency strategist at Barclays Capital in Singapore. The rupee advanced 1.1 per cent to 50.7150 per dollar in Mumbai, the biggest gain since January 27. The currency fell 3.3 per cent this month due to an increase in demand for dollars from importers ahead of the March 31 financial year-end, paring its quarterly advance to 4.6 per cent.