Rupee Tumbles Most Since June as Emerging-Market Selloff Deepens
- Volatility in Indian currency surged 165 basis points Friday
- Sovereign bonds decline, ending four-day winning streak
The Case for Staying Bullish on Emerging Markets
This article is for subscribers only.
The rupee dropped the most in more than four months as speculation the Federal Reserve will become more aggressive in raising interest rates under a Donald Trump-led administration triggered concern over outflows from Indian assets.
The currency declined 0.9 percent, the most since June 24, to 67.2450 per dollar in Mumbai, according to prices from local banks compiled by Bloomberg. It touched 67.2550 intraday, the weakest level since July 27. State-run banks sold dollars on behalf of the Reserve Bank of India, two Mumbai-based traders said earlier in the day, asking not to be identified. A gauge of expected rupee swings surged 165 basis points to 6.19 percent, the highest since June.