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Japan Bond Yield Surge Risks Capital Outflows, Weakening Indian Rupee: Experts

Economy

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Published on 19th November 2025, 4:14 AM

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Author

Simar Singh | Whalesbook News Team

Overview

Rising Japanese government bond yields are prompting global investors to consider shifting capital back to Japan, potentially leading to Foreign Portfolio Investor (FPI) outflows from emerging markets like India. This could weaken the Indian Rupee, increase borrowing costs domestically, and affect Indian companies importing Japanese goods. Debt investors are advised to remain invested and consider a phased approach for new investments.