India’s 10-year government bond yield rose to the highest level in 12 weeks and the rupee fell to a two-month low after a report showed inflation accelerated last month by more than economists predicted.
India’s rupee fell for a second day on speculation faster inflation will prompt the central bank to boost borrowing costs for the second time in two months, setting back efforts to arrest an economic slowdown.
India’s rupee rose, halting a two-day loss, after the current-account deficit widened by less than economists predicted, helping offset concern that a U.S. government shutdown will damp capital inflows.
India’s rupee jumped after the new central bank governor took steps to boost dollar supply and lawmakers moved closer to allowing foreign investment in pension funds. Stocks surged, while government bonds fell.