India’s rupee plunged to a record low on speculation a strengthening U.S. economy will prompt the Federal Reserve to pare its $85 billion of monthly bond purchases as soon as next month. Government bonds declined.
The Bloomberg Dollar Index climbed 0.5 percent last week as data showed U.S. jobless claims decreased to their lowest level since 2007 and retail sales rose for a fourth month in July. The Fed may taper its stimulus in September by $10 billion, according to the median estimate of economists in a survey concluded last week. The central bank will release minutes of its July 30-31 meeting on Aug. 21.
The rupee slid as much as 1.3 percent today to an unprecedented 62.4600 per dollar and traded at 62.3138 at 10:00 a.m. in Mumbai, according to prices from local banks compiled by Bloomberg. It weakened 1.3 percent last week.
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