As the U.S. dollar surged due to the early results of the presidential election, the Indian rupee fell to its lowest level ever on Wednesday, forcing the central bank to step in.
The rupee dropped almost 0.1% from Tuesday’s closing to 84.1950 versus the US dollar. However, other Asian currencies did far worse, falling 1% to 1.3%, including the Thai baht, Malaysian ringgit, Korean won, and offshore Chinese yuan.
The Reserve Bank of India probably sold dollars, as it has done numerous times in the past month, which is why the rupee’s reaction was so mild.
As trends suggested that Republican nominee Donald Trump had an advantage, the dollar index increased 1.5% to a four-month high of 105.19, sparking interest in so-called “Trump trades.”
While U.S. equities futures surged, U.S. Treasury yields rose, with the 10-year yield rising 15 basis points to 4.44%.
