Mumbai: The rupee slipped below 62 against the dollar for the first time today and key indices of the equities markets crashed by nearly four percent as foreign investors’ dumped Indian stocks on signs of improvements in the advanced economies.
The partially convertible rupee dipped to a new record low of 62.03 against the dollar at inter-bank foreign exchange market here, surpassing its previous record low of 61.80 hit on Aug 6.
The rupee was quoted at 61.67 at 12.40 pm Indian time against its Wednesday’s close at 61.43. The markets were closed yesterday due to the Independence Day celebrations.
Key indices of the Indian equities markets crashed by nearly percent after data showed that the US economy was set for recovery and some of the European economies are out of recession. This created a fear that the overseas investors would pull money from Indian equities and put in American markets.
The 30-scrip S&P Sensex of the Bombay Stock Exchange (BSE) slumped to a low of 18,621.39, down 746 points from its previous close at 19,367.59 points.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) tumbled more than 200 points.
The markets have crashed despite a series of measures announced by the government to control current account deficit, a key reason seen behind the currency market volatility.