The rupee dipped to a 20-month low on Thursday as foreign investors continued to pump out money from Indian equities and debt markets, amid fears of a ‘sudden change’ in inflation expectations, which gripped the financial markets.
The Indian currency fell by more than one per cent to 64.28 a dollar, compared with its previous close of 63.54, and reached levels last seen in September 2013. “Foreign portfolio investors are pulling out from the stock markets, and bond yields are firming up as uncertainty prevails,” said Kishore Narne, Director and Head Commodity & Currency, Motilal Oswal.
The benchmark 10-year Government Securities was traded at 7.97 per cent against 7.5 per cent a month ago.
Meanwhile, the BSE Sensex closed at 26599.11 with a loss of 118.26 points.
