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
This article is for subscribers only.
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.