India becomes latest epicenter of nervousness sweeping emerging markets

Rupee down as much as 1.3%, most across emerging Asia

India became the latest epicenter of the nervousness sweeping emerging markets as better-than-forecast current-account data failed to stem the slide in the rupee.

The currency sank as much as 1.3 per cent, while stocks dropped the most since August and bonds tumbled to the lowest level since 2014. Turkey’s lira also weakened, wiping out about half of last week’s gains, while declines in almost every other developing-nation currency left the benchmark MSCI Index close to dropping below its 200-week moving average for the first time since early 2017.

Though India’s current-account deficit was narrower than expected, the fact that it