US tax cut move halts Rupee gains

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.