Rupee falls below 75 to US dollar

Hitting a new low, Indian Rupee fell sharply to 75.31 against the dollar at day’s low, compared to its previous close of 74.24.  The selling of Indian stocks and bonds by overseas investors also worked against the Indian currency. However, as investors sold currencies, bonds and stocks in Asia to pile into the world’s reserve currency, dollar surged against other Asian currencies too. The US dollar index, a measure of greenback against a basket of six currencies, rose 0.24% to a record high of 101.40.

Indian bond yields have been surging as foreign investors dump rupee-debt and after the Reserve Bank of India let down markets by refraining from announcing interest-rate cuts this year.