India, March 30 -- India's currency hits historic low as arbitrage trades and importer demand overwhelm early gains. The Indian rupee broke through a line no one wanted to see crossed. On Monday, the currency fell to 95.14 against the US dollar its worst level ever. What started as a promising day ended in alarm, raising fears of a slide toward the unthinkable: 100 per dollar.

The rupee had opened sharply higher at 93.60, gaining over 1%. However, those gains vanished fast. By day's end, the currency had surrendered all ground and set a fresh record low. The benchmark 10-year government bond yield edged up slightly, while domestic equity indices remained on edge as the currency's fall spooked market participants.

What Triggered the Fall...