The rupee plunges to a new record low of 68.75 per dollar in the late morning trade on persistent dollar demand from banks and importers due to further fall in equity market amid rise in crude oil prices.

The rupee resumed lower at 66.90 per dollar as against the last closing level of 66.24 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to an all-time low of 68.75 per dollar at 1045 hrs.

Persistent capital outflows by foreign funds also affected the rupee value against the dollar, a forex dealer said.

Foreign Institutional Investors (FIIs) sold shares worth a net Rs 1,373.99 crore on Tuesday as per the provisional data from stock exchanges.

Oil prices rose in Asian trade on Wednesday on concerns over possible US military action against Syria after Washington warned President Bashar al-Assad’s regime that it would face action over an alleged chemical weapons attack.

New York’s main contract, West Texas Intermediate (WTI) for delivery in October, was up 57 cents to USD 106.49 in mid-morning trade.

Meanwhile, the benchmark Sensex tumbled by 457 pts or 2.54 per cent to 17,510.89 at 1035 hrs.

Sensex tumbles further by 473 pts on heavy selling

The S&P BSE benchmark Sensex plunges further by 473 points in the late morning trade on persistent selling pressure, triggered by sharp fall in the rupee value against the dollar coupled with sustained capital outflows by foreign funds.

Shares of Banking, Refinery, PSU, Realty, Captial Goods, FMCG, Power, Auto and Metal declined on heavy selling.

The rupee hitting a record low of 68.75 against the dollar in the early trade dampened sentiment.

The Sensex resumed lower at 17,851.44 and dropped further to a low of 17,448.71 before quoting at 17,494.80 at 1040 hrs, showing a loss of 473.28 points or 2.63 per cent from its last close.

The NSE 50-share Nifty also tumbled by 144.15 points or 2.73 per cent to 5,143.30 at 1040 hrs.

Major losers were ONGC (8.08 pc), HDFC (6.36 pc), M&M (5.48 pc), HDFC Bank (4.69 pc), BHEL (4.46 pc), Icici Bank (4.46 pc) and Bharti Airtel (4.32 pc).

Foreign institutional investors (FIIs) sold shares worth a net Rs 1373.99 crore yesterday as per provisional data from the stock exchanges.

Asian stocks dropped for a second day today on concerns the US will take military action against Syria.

 

Key benchmark indices in Singapore, Hong Kong, Indonesia, China, South Korea and Japan fell by 0.24 per cent to 2.32 per cent while Taiwan’s stock market rose 0.06 per cent.

US stocks also fell on Tuesday with the Dow Jones Industrial Average ending at a two-month low, as unease over possible US action against Syria shook global markets.