India’s Rupee Plunges to Record Low on U.S. Jobs Data

India’s rupee fell to a record after a U.S. jobs report showing companies hired more workers than economists forecast added to the case for the Federal Reserve to reduce monetary stimulus.

The currency dropped the most in almost two weeks as U.S. payrolls rose by 195,000 workers for a second month in June, the Labor Department reported July 5 in Washington, exceeding the 165,000 median estimate in a Bloomberg survey. The Dollar Index, which tracks the greenback against six major trading partners, rose to the highest level since July 2010. Global funds have pulled $7.6 billion from Indian bonds since holdings touched an all-time high on May 21.

“The data could lead to outflows from all emerging markets,” said Vikas Babu, a trader at state-run Andhra Bank (ANDB) in Mumbai. “The central bank could come in and intervene to protect key levels.”


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