India Rupee Falls to Three-Week Low as China Fuels Risk Aversion

  • PBOC cuts yuan fixing to the lowest since April 2011
  • A gauge of dollar strength rises for an eighth straight day
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India’s rupee dropped to a three-week low as demand for riskier assets ebbed after China weakened the yuan’s fixing to the lowest since 2011 and North Korea said it tested a hydrogen bomb.

The rupee declined 0.4 percent to 66.83 a dollar in Mumbai, prices from local banks compiled by Bloomberg show. It fell to 66.8350 earlier, the weakest level since Dec. 16. A gauge of dollar strength advanced for an eighth day, set for its longest run of gains since September 2014.

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India Rupee Falls to Three-Week Low as China Fuels Risk Aversion