BW Communities

Rupee Falls, Markets Tumble Again

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[After a day's lull, the Sensex on Friday dipped again below the psychological 16,000 level as rupee tumbled to a new all-time low of Rs 54.89 amid escalating domestic inflation and weak global cues on deepening Greek crisis. The 30-stock BSE Sensex, which had a brief recovery on Thursday, rolled down to trade 260.77 points to trade at 15,809.71 at mid session as foreign funds intensified their selling. The rupee touched new low levels on concerns over slowing economic growth and widening trade deficit. The market received more beating as Asian peers fell with the regional benchmark indices lost over two per cent in morning trade after US economic data missed estimates and Moody's downgraded 16 Spanish banks rating and Greece as Europe?s debt crisis deepened. In a third straight falling session, the rupee touched a 54.89, surpassing Thursday's low of 54.60, as dollar strengthened against the Euro and basket of other foreign currencies. On similar lines, the broad-based National Stock Exchange index Nifty dipped below a crucial 4,800 level by falling 81.25 points, to 4,788.95 led by stocks of auto, capital goods and realty sectors. Brokers said the market remained under pressure as stocks and currencies world-wide weakened on Moody's downgraded 16 Spanish banks and a poor US manufacturing data heightened concerns over the global economy. They said the rupee was on free-fall mode on strong demand for American currencies on increased capital outflow from equity markets, even as the RBI's measures to curb the persistent fall has failed to have any major impact. Meanwhile, retail inflation shot up to double-digit mark at 10.32 per cent in April on account of substantial increase in vegetable, edible oils and milk prices. (PTI)