Rupee hits 72.98, Sensex falls 295 pts

The Nifty also fell over 98 points to crack below the 11,300-mark.

The battered rupee on Tuesday plummeted by another 46 paise to hit a new all-time record low of 72.97/98 against the dollar on heavy demand for the US currency amid the country’s widening trade gap and the broader emerging market turmoil caused by rising US interest rates and an escalating US-China trade conflict. The Sensex also plunged 295 points to 37,290.67 due to hectic selling in financial and auto stocks as the rupee woes hit the stock markets. The Nifty also fell over 98 points to crack below the 11,300-mark.

In the early trade, the domestic currency recovered 10 paise to 72.41 against the US dollar amid volatility on fresh selling of the US currency by exporters and banks. However, the rupee gave up gains and plunged close to the 73 level. The rupee touched a record low of 72.99, 14.5 per cent lower in the year. The currency has weakened despite the RBI pumping in $ 20-25 billion to defend the rupee this year.

Meanwhile, the International Monetary Fund (IMF) said that the Indian rupee has ‘effectively’ depreciated only 6-7 per cent this year after adjusting it to inflation, almost half of the actual drop in the value of the currency this year.