Rupee rises to 2-month high after govt wins vote

Enlarge Photo A man uses an electronic machine to check an Indian currency note at a money...

Wed, Jul 23 05:01 PM

MUMBAI (Reuters) - The Indian rupee rose to its highest in more than two months on Wednesday, helped by a rally in local shares after a victory for the ruling coalition raised hopes for reviving stalled economic reforms.

Lower oil prices also boosted sentiment.

At 4:46 p.m., the partially convertible rupee was at 42.13/14 per dollar, its strongest since May 13, and 1.4 percent stronger than 42.73/74 at close on Tuesday.

Indian Prime Minister Manmohan Singh's government won a vote of confidence in parliament late on Tuesday, ensuring the survival of the ruling coalition and a civilian nuclear deal with the United States.

Oil , India's biggest import, fell more than $1 on Tuesday and was trading just above $126 per barrel. It had hit a record $147.27 earlier in this the month.

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