From ‘taper tantrums’ to ‘Trump tantrums’—the Indian rupee faces a new reckoning

After all, were RBI to buy incoming greenbacks to square off its position, the rupee might slip further and squeeze returns for overseas fixed-income funds. So far this month, foreigners have sold $790 million of index-eligible Indian bonds. Even with the yield on the benchmark government note at its highest in more than three months, they seem unwilling to bite. Lest the rupee comes back to bite them.