Indian stocks and bonds rallied as a plunge in crude prices reduced inflation concerns and pressure on the external finances of the oil-importing nation.

Indian companies cut dollar purchases used to hedge against rupee weakness to an eight-month low, a sign that the central bank’s crackdown on what it called speculative bets against the currency is yielding results.

Indian bonds gained the most in six months on Monday as crude prices extended losses, easing inflation concerns for the fuel-importing nation.

Brazil’s surprise election result dominated emerging-market trading Monday as the country’s stocks, currencies and debt plunged following Luiz Inácio Lula da Silva victory.

India’s central bank rejected all bids at a sale of federal treasury bills for the first time in seven months amid a bond selloff that pushed borrowing costs to multi-year highs.

India’s rupee extended gains for an eighth straight session, buoyed by foreign inflows into Jio Platforms Ltd.’s $3.1 billion initial public offering, the nation’s largest.

India’s central bank said its recent derivative restrictions will only apply to deals for hedging forex risk and not for market-making, providing a clarification after sharp swings in currency forward markets.

India’s rupee gained as the central bank chief said the authority would consider more steps to thwart speculative bets, days after announcing sweeping measures to bolster the currency. Central bank intervention also fueled the advance.

India’s importers are now in the crosshairs of the central bank, as its latest efforts to shore up the rupee expand from financial markets to the economy.

A country whose economy is expanding faster than those of its peers would typically expect its currency to strengthen. India’s growth has outstripped even that of manufacturing powerhouse China, yet the rupee has weakened every year since 2018.

India’s rupee extended gains as the central bank widened currency curbs to support the rupee, which faces pressure from high oil prices and foreign outflows.

The Indian rupee strengthened the most in six months after the central bank took some of its strongest measures to bolster the currency since the 2013 taper tantrum.

The Reserve Bank of India is broadening its defenses to steady the rupee, taking some of its strongest measures since the 2013 taper tantrum. That may give the currency a boost as trading resumes Monday, but the question remains: how far is the central bank willing to go as external pressures mount?

India’s central bank rolled out a series of measures to support the sliding rupee in its strongest action since the country’s currency crisis in 2013.

India’s central bank has put all kinds of support around the rupee, and it’s only just stopping the currency from hitting a record low.

India’s central bank is poised to raise interest rates for the first time in nearly four years on Wednesday as rising inflation and a rupee near record lows force policymakers to shift gears.

Latin American currencies posted some of the biggest gains on Monday, with the Brazilian real spearheading the advance after right-wing candidate Flávio Bolsonaro surged to a surprise lead in the first round of the presidential election.

Just months ago, India’s central bank pulled out all the stops to draw in dollars to bolster its foreign-exchange reserves and defend the rupee. The stronger-than-expected deluge of cash is now adding to the case for a more hawkish monetary policy stance.

India will keep its federal borrowing for October to March close to target amid fiscal pressures, while aligning the program with the central bank’s effort to drain record cash netted from the nation’s vast diaspora.

India’s central bank carried out currency swaps worth at least $10 billion in recent weeks to reduce liquidity in the financial system, according to people familiar with the developments, as the authority seeks to curb inflation risks from surplus cash.