Sebastien Barbe News
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India’s rupee rose, erasing earlier losses, on speculation the yield advantage on local assets will attract global capital as advanced nations keep interest rates low to revive economic growth.
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India’s rupee climbed to a one-week high on speculation the central bank will reduce borrowing costs to support growth amid signs of a recovery in the global economy.
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Asian currencies had their biggest weekly gain in almost two months as reports showed regional economies are improving and concern faded that Europe’s debt crisis will worsen.
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Volatility indexes show Europe’s fiscal crisis is jolting markets in Asia’s largest economies, with gauges in China and India jumping as much as in the U.K.
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Buying the South Korean won and the Indian rupee against the yen is the best way to profit from Asia’s diverging economic growth prospects, according to BlueGold Capital Management LLP and Credit Agricole SA.
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Emerging-market stocks rose, paring the first weekly decline this month, as a report saying European officials will unveil a bailout plan for Spain fueled demand for commodity producers.
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India’s rupee fell to a 10-week low after European leaders failed to agree on a debt-reduction package for Greece, boosting demand for the relative safety of the dollar.
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Sebastien Barbe, chief emerging market strategist at Credit Agricole CIB in Paris, comments on the outlook for India’s currency after the Reserve Bank of India tightened rules for rupee forward trading, saying canceled contracts can’t be bought again.
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Emerging-market stocks rose, paring the first weekly decline this month, as a report saying European officials will unveil a bailout plan for Spain fueled demand for commodity producers.
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A surge in crude-oil prices to the highest level in two years is prompting Barclays Plc and Royal Bank of Scotland Group Plc to predict India’s widening current- account deficit will threaten the rupee’s rally.
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