How US bonds triggered rupee rout on Friday

Business


It closed at 73.47 a dollar Friday versus 72.42 a day earlier, showed Bloomberg data, compiled by ETIG. The central bank reportedly stepped in to stem the sharp erosion, market sources said.

Synopsis

The local unit lost nearly 1.5 percent, the sharpest drop in value against the dollar since March 23, the day when New Delhi imposed a nationwide lockdown last year to prevent the virus from spreading.

The rupee plunged the most in about 11 months after US treasury yields surged to their highest in a year, triggering concerns that increasing cost of funds stateside could accelerate outflows from emerging markets such as India.The local unit lost nearly 1.5 percent, the sharpest drop in value against the dollar since March 23, the day when New Delhi imposed a nationwide lockdown last year to prevent the virus from spreading. It closed at 73.47

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