Rupee falls to record low; bond yields hit 5-year high

The rupee hit a record low on Monday as defence of the currency failed to stop its decline, but exacted a rising toll, with bond yields surging to five-year highs and investors demanding higher returns in an auction of cash bills. The partially convertible rupee tumbled as far as 63.30 to the dollar despite measures in recent weeks by the central bank and government to defend it. It ended at 63.13/14, down 2.3 per cent, its biggest single-day fall since September 22, 2011.