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<b>Indian Rupee to Extend Losses as Volatility Rebounds, BNP Says </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Jan. 22 (Bloomberg) -- Volatility in India’s rupee will rebound from a four-month low as the currency declines on sales of the nation’s assets by overseas funds, BNP Paribas SA said.
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The rupee has lost 0.7 percent this month, adding to the 19 percent slump last year, <b>as global funds sold $728 million more Indian stocks than they bought</b>. All of the 10 most-active Asian currencies outside of Japan fell against the dollar this month.

<b>The rupee, which closed at 49.13 per dollar in Mumbai yesterday, will weaken to 50 in the coming weeks,</b> Thio said.

<b>Implied volatility on one-month dollar-rupee options was at 14.75 percent </b>yesterday, the lowest since Sept. 26, Bloomberg data show. <b>The gauge of fluctuations touched 33 percent on Oct. 27, the highest in at least nine years</b>. Traders quote implied volatility, a gauge of expected swings in exchange rates, as part of option prices
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