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Rising India-Pak tensions not good news for already reeling rupee, bonds

Nervousness ratcheted up Wednesday after Pakistani fighter jets struck at targets inside Indian-controlled Kashmir, prompting both nations to close down large swathes of airspace

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In this context, NEER being at 73.37 looks interesting

Kartik Goyal | Bloomberg
The spike in tensions between India and Pakistan couldn’t have come at a worse time for assets in the world’s fastest-growing major economy, which is battling headwinds from a rebound in oil prices to the uncertainty surrounding the upcoming elections.

The rupee has gone from being the best-performing Asian currency last quarter to the worst this year, sovereign bonds are set for a second month of declines and equities have sat out the rally that’s driven Asian stocks to a four-month high.

The nervousness ratcheted up Wednesday after Pakistani fighter jets struck at targets inside Indian-controlled Kashmir, prompting both nations

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First Published: Feb 28 2019 | 9:14 AM IST

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