The rupee fell to its lowest in more than nine months as the recent slump in crude oil prices sparked concerns about the health of the global economy. The currency closed down by 31 paise at 62.33/34 per dollar, after falling to as low as 62.3575, a level last seen on February 20.
On the other hand, the Sensex tumbled 229.09 points to a six-week low of 27,602.01 on sharp losses in Reliance Industries and ONGC after further drop in crude prices. The Sensex has fallen around 850 points in the last four sessions as analysts warned of a decline in capital inflows.
According to dealers, the Reserve Bank of India sold dollars through nationalised banks to stem the rupee’s fall. Foreign institutional investors sold Indian equity derivatives worth Rs 1,915 crore on Wednesday, weighing on the rupee sentiment. The RBI is expected to continue its intervention against sharp depreciation.