Business | Markets
US tax cut move halts Rupee gains
- Bloomberg
- Published: 00:00 December 9, 2010
Mumbai: India's rupee fell, snapping a six-day winning streak, as a move by the US to extend tax cuts to boost growth in the world's largest economy reduced the allure of higher-yielding currencies.
The Dollar Index, which tracks the greenback against six major currencies, rose for a third straight day.
"The US tax package is seen as bullish for that economy," said Krishnamurthy Harihar, treasurer at FirstRand Ltd. "Treasury yields also rose, and these two factors were seen as dollar-positive."
The rupee declined 1 per cent, the most since November 15, to 45.08 per dollar at close in Mumbai. The currency has advanced 1.8 per cent this month.
Overseas investors bought a record $29.3 billion (Dh107.7 billion) of Indian equities and $9.5 billion of bonds this year, exchange data show.
More from Markets
More from Business
Business Editor's choice
-
China breaks West's solar monopoly
Some countries in the world, especially Germany and the United States, have made considerable efforts to invest in developing solar energy cells
-
Burberry store spree will cut profit
Trenchcoat maker forges ahead with investment strategy targeting emerging markets
-
Laws needed to spur region bond markets
UAE Central Bank calls for creation of a centralised Sharia board to facilitate the sale of sukuk
