India

India's Rupee Plunges to Record Low

Surge in oil prices a serious problem

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India's rupee plummeted the most in two decades to a record as a surge in oil prices threatened to worsen the current account and push the economy toward its biggest crisis since 1991. Bonds fell.

The U.S., France and the U.K. are considering limited military action against Syria after concluding the regime used chemical weapons against civilians, fanning concern unrest will disrupt Middle East oil supplies. The tension has worsened a rout that's seen global funds pull $8.7 billion from local debt since end-May on bets the Federal Reserve will pare stimulus. A 7.4 percent jump in Brent crude this month is set to boost costs for India, which imports almost 80 percent of its oil.

"The market is in a super-panic stage," said Samir Lodha, senior partner at QuantArt Market Solutions Pvt. in Mumbai.