Stock market crashes as Rupee hits life-time low; RBI to intervene
The rupee hits a fresh record-low of 72.76 against the dollar as the Sensex, here on Tuesday. It crashed over 400 points as the markets turned nervous ahead of key retail inflation data that will be released on Wednesday.
At 15:26 pm, the rupee was trading at Rs 72.70 against the US greenback after opening at 72.30 in the morning. The weakening of the rupee has not only triggered a spike in bond yields, which has gone up to 8.174% compared to the previous close of 8.158%.
Benchmark Sensex continued to weaken throughout the day and was down 509 points or 1.34% at 3:30 pm, ending at 37,413.13.
While government officials have repeatedly said that the rupee’s constant fall is due to external factors such as rising crude oil prices and an uneven global trade climate, it seems that the torrid global climate may further weaken the rupee beyond 75 against the dollar.