Indian Rupee Volatility Jumps Most Since August on Election Risk
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A gauge of expected fluctuations in India’s rupee surged the most since August amid speculation the currency will pare this year’s gains should election results due in a month go against predictions.
The main opposition Bharatiya Janata Party is leading in opinion polls, as voters punish the ruling Congress party for corruption scandals and the slowest growth in a decade. A decisive victory for the BJP would be a “catalyst” for long-term rupee gains, while a weak coalition could fuel declines, Adam Gilmour, Citigroup Inc.’s head of Asia-Pacific currency and derivatives sales, said last month. The world’s biggest-ever election began on April 7 and results will be announced May 16.