India’s rupee and bonds extended losses, while local stocks plunged after the nation said it attacked terrorist camps in Pakistan.
The currency weakened 0.6 percent, the most since June 24, to 66.8550 per dollar at the close in Mumbai. The main S&P BSE Sensex index of shares slumped 1.6 percent to a one-month low, after dropping 2 percent earlier. The yield on sovereign notes due September 2026 surged 8 basis points to 6.86 percent, the biggest jump for a benchmark 10-year security since August 2015. The central bank was seen selling dollars through state-run banks to stem the rupee’s decline, traders said.
India carried out the surgical strikes on Wednesday night, Director General of Military Operations Ranbir Singh said in New Delhi
