The Indian rupee crashes to yet another record low of 71.10 against US dollar raising concerns on the macroeconomic front. The rupee has fallen around 10 per cent since the start of this financial year on the back of rising crude oil prices. Also Read - Indian Rupee Continues to Slide; Opens Record Low at 70.68 Against US Dollar
Accordingly, The Financial Benchmarks India private limited (FBIL) today fixed the reference rate of the rupee at 70.7695 against the US dollar and 82.1445 for the euro. The corresponding rates were 70.9255 and 82.8391 as on Friday August 31. Also Read - Jet Airways Cuts Salary of Employees by up to 25 Per cent Due to Rising Crude Oil And Falling Rupee
Adding to the woes, the country’s manufacturing sector activity eased for the second consecutive month in August. Also Read - Falling rupee, results, no rate cut drown Indian equities
Amid volatility, the BSE Sensex also closed about 333 points down posting fourth straight session fall due to widespread selling and the rupee hitting yet another record low.
Weakening global cues, triggered by continuing trade war spats between the US and China, too impacted domestic market sentiment.
The BSE benchmark index Sensex today hiked over 289 points to hit a high of 38,934.35 in early trade riding on the wave of first-quarter GDP data. The markets, however, touched a a low of 38,270.01 after data showed that manufacturing PMI has slowed in August.
It finally settled at one-week low of 38,312.52, showing a hefty loss of 332.55 points, or 0.86 per cent. The gauge had lost 251.56 points in the last three sessions.
The broader NSE Nifty closed below the 10,600 mark by plunging by 98.15 points, or 0.84 per cent, at 11,582.35 after shuttling between 11,567.40 and 11,751.80.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 212.81 crore while domestic institutional investors (DIIs) were net buyers to the tune of Rs 171.92 crore on Friday, as per provisional data.
(With PTI Inputs)