Rupee’s Slide to Record Drags Down Bonds, Most Indian Stocks

India’s rupee sank to a record as investors favored the dollar on speculation U.S. policy makers will curb asset purchases, triggering concern about inflation in a nation that imports about 80 percent of its oil.

The rupee’s largest drop in more than 20 months dragged down the country’s bonds and most stocks on speculation the central bank will refrain from lowering borrowing costs this month. There is no need for the government to intervene to support the currency and the “panic” in the market is “unwarranted” as the drop is in line with other counterparts, Economic Affairs Secretary Arvind Mayaram said in New Delhi today. The Dollar Index rose for a second day and the greenback has gained against 21 of 24 emerging-market currencies in 2013.