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India Rupee Sinks to Record, Bonds Slump on Fed Taper Concern

India’s rupee plunged to a record low on speculation a strengthening U.S. economy may prompt the Federal Reserve to pare its $85 billion monthly bond-buying program as early as next month. Bonds and stocks declined.

U.S. home sales probably climbed to a three-year high, data may show Aug. 21, the same day minutes of the Federal Open Market Committee’s July meeting are slated to be released. The Fed may taper its stimulus in September by $10 billion, according to the median estimate of economists in a survey concluded last week. The Bloomberg Dollar Index rose 0.5 percent in the week to Aug. 16 as U.S. jobless claims fell to their lowest level since 2007 and retail sales increased for a fourth month in July.