Indian Rupee Completes Weekly Loss as Modi Party Loses Key Seat

  • Concern reforms blocked outweighs easing of FDI restrictions
  • Sovereign bonds rise in shortened trading week after holiday
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India’s rupee completed a fifth weekly decline after Prime Minister Narendra Modi’s party lost an election in a key state, heaping more pressure on the government to deliver on reform pledges.

The loss in Bihar, the nation’s third most-populous state, has raised concern Modi’s opponents will block his proposals in Parliament, including the introduction of a goods and services tax and the easing of labor laws. That’s diminished the impact of this week’s relaxation in investment rules, according to Kotak Securities Ltd.