Rupee leads Asia FX losses as solid US jobs spur fears of outflows

The Indian rupee hit a record low on Monday, leading declines among emerging Asian currencies, as better-than-expected US jobs growth boosted expectations that the Federal Reserve will reduce its stimulus measures, driving up US treasuries' yields and heightening worries about capital outflows from the region.

Sentiment about emerging Asia was also hit by China's plan to choke off credit to force consolidation in industries plagued by overcapacity as it seeks to end the economy's reliance on investment funded by cheap debt.

The rupee fell to an all-time low of 61.21 per dollar, forcing the Reserve Bank of India to intervene to stabilise the currency. India is vulnerable to the sea-change in capital flows as it needs inflows to fund its big current account deficit.

The Singapore dollar hit a 13-month low against the greenback, while the Thai baht touched an 11-month trough.

Asian financial markets suffered after US non-farm payroll data that showed 1,95,000 jobs were created last month, better than the 165,000 expected.