<div>The rupee rose to its highest in six weeks on Wednesday (5 March), as the BSE share index approached a record closing high on strong foreign flows, while sentiment was helped as emerging market currencies benefited from tentative hopes of easing tensions in Ukraine.</div><div> </div><div>The Sensex closed just around 0.5 percent away from a record closing high hit on January 13 as foreign investors have bought a net $800 million over the previous 13 sessions to Tuesday.</div><div> </div><div>Investors will be eyeing whether those flows can sustain ahead of general elections, which are due to start on April 7 and conclude by May 12, with results due out on May 16.</div><div> </div><div>Traders hope elections will see the opposition Bharatiya Janata Party, which is perceived to be more business-friendly, winning a majority to usher in reforms and pull the economy out of the current slow growth, while they most fear a split outcome.</div><div> </div><div>"The conviction in the rupee strengthening in widening. With news of election and exit polls showing a strong performance for the opposition, the chances of a stable government coming in are rising. I expect more flows to come in," said Subramanian Sharma, director at Greenback Forex.</div><div> </div><div>The partially convertible rupee closed at 61.75/76 versus Tuesday's close of 61.845/855 per dollar. It rose to 61.6650 intra-day, its highest since January 21.</div><div> </div><div>The rupee benefited from gains in emerging market currencies such as the South Korean won and even the Chinese yuan, which had been under pressure recently.</div><div> </div><div>But caution over military tensions in Ukraine remain, with Russian shares slipping and the rouble headed towards record lows.</div><div> </div><div>In the offshore non-deliverable forwards, the one-month contract was at 62.16 while the three-month was at 62.91.</div><div> </div><div>(Reuters)</div>
