A gauge of expected fluctuations in India’s rupee surged the most since August amid speculation the currency will pare this year’s gains should election results due in a month go against predictions.
India’s rupee weakened a second day on concern inflation that exceeded economists’ estimates will erode returns from the nation’s assets.
India’s rupee fell for a third day, the longest losing streak since January, on speculation companies bought dollars to meet import payments.
Indian rupee forwards traded offshore rose on optimism Asia’s relatively fast economic growth will attract capital inflows.
JPMorgan Chase & Co. sold $24.1 million of notes tied to the Indian rupee, the largest such offering since November 2010.
Turkish bonds fell, ending the longest streak of gains in 11 months, as a report showing faster-than-expected inflation spurred bets the central bank may raise interest rates. The lira declined.
The Philippine peso’s failure to strengthen in the face of data showing a widening current- account surplus and an upgraded credit rating has stoked concern that imports are being underreported due to smuggling.
Japan’s encouragement of yen depreciation to boost the economy threatens to backfire by making the country dependent on foreign investors for funding.
Indian rupee forwards snapped a three-day gain on signs the Federal Reserve will keep tapering stimulus that has boosted fund flows to emerging markets.
India’s rupee fell the most in almost two months after the U.S. cut stimulus further and signaled interest rates will be raised, potentially damping fund flows into emerging markets.
BBH’s Solot Says Most EM Currencies May Sink More