India In Crisis: Sensex Crashes 800 Points, Rupee Hits All Time Low 62

[sid_22]

A benchmark index of Indian equities markets on Friday closed 769 points down after falling over 807 points during the day as the rupee fell to a record low of 62 per dollar amid heavy selling by foreign funds.

The 30-scrip sensitive index (Sensex) of the S&P BSE, which opened at 19,297.11 points, closed (provisional) at 18,598.18 points, down 769.41 points or 3.87% from Wednesday's close at 19,367.59 points. The wider 50-scrip Nifty of the National Stock Exchange (NSE) closed Friday's trade at 225.35 points or 3.92% down at 5,516.95 points (provisional).

[b]Rupee at new all-time low[/b]
Rupee plunged to a new record low against the dollar Friday and stocks slid 2.66 percent over fears that foreign capital could flow back to the United States as the American economy improves.The rupee, one of Asia's worst-performing currencies this year, hit a new low of 62.00 rupees to the greenback, slipping past its previous low of 61.80 rupees on August 6.

The drop in value reflects fears that recent measures by the central bank may not be able to help the ailing currency, dealers said.
The government slapped new controls on foreign exchange outflows Wednesday to try to arrest the rupee's fall.
Dealers said there was no immediate sign of an intervention by the central bank to prop up the rupee, which at Friday's low had depreciated 13.2% compared to its value against the dollar in 2013.
The rupee's woes come as the government is struggling to turn around India's once red-hot economy by pledging new steps to narrow the gaping current account deficit -- the broadest measure of trade.
The economy grew at a decade-low 5.0 percent in the year to March.
The depreciating rupee stokes inflation by raising the cost of everything India imports from crude oil to chemicals and pulses.


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