Indian stocks climbed, with the benchmark index rebounding from a two-week low, after a decline in oil prices eased concern that inflation will accelerate.
After months spent working to erase their image as emerging markets to avoid, the Iraq crisis and its influence on oil prices are putting the fragile five currencies back on investors’ sell lists.
Indian stocks and the rupee are diverging by the most in a year amid efforts by the central bank to restrain the currency even as equities surged to a record following the nation’s most decisive election in 30 years.
Indonesia’s rupiah and the Indian rupee led declines among Asian currencies this week on concern the two nations’ trade deficits will widen after violence in Iraq caused a spike in global oil prices.
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