The Indian rupee tumbled to a record low on Monday, with investors panicking that a US downturn could spark a foreign outflows torrent.
The rupee opened at 83.78 to the US dollar compared to its previous close of 83.75, and slipping past the lifetime low of 83.7525 hit on Friday.
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The selloff in US and Asian equities following a disappointing jobs report spurred worries of foreign outflows from India and other emerging markets.
Indian stocks retreated with Mumbai’s signature Nifty 50 index sliding 2.68%, or 662.10 points, to 24,055.60, and bond yields dropped to their lowest in two years.
The sharp selloff may prompt the Reserve Bank of India to let USD/INR move higher to 83.90, a trader at a public sector bank said.
- Reuters with additional editing by Sean O’Meara
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