Tuesday, 20 August 2013 00:00
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Reuters: The Indian rupee hit a record low on Monday as India’s defence of the currency failed to stop its decline but exacted a rising toll, with bond yields surging to five-year highs and investors demanding higher returns in an auction of cash bills.
The rupee tumbled as far as 63.00 to the dollar, down about 2% on the day and breaching the previous low of 62.03 hit on Friday despite a spate of measures in recent weeks by the central bank and government to defend it.
Policymakers’ measures to prop up the currency, which has tumbled 12% against the dollar so far in 2013, have thus far proved ineffective, making it the worst performer in emerging Asia and threatening to drive the region’s third-largest economy towards a full-blown crisis.
