Rupee plunges to fresh record low of 73.77 against dollar

Sensex falls over 200 points, Nifty slips below 11,000

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According to reports, the rupee opened at a record low of 73.25 against USA dollar surpassing the previous low of 72.98, which it had touched on September 18. It was further boosted when Fed chairman Jerome Powell suggested that moving beyond neutral interest rates was a possibility.

The Indian rupee plunged as much as 0.64 per cent to a fresh record low of 73.813 against the dollar after hitting an all-time low on Wednesday.

Traders remained cautious ahead of the Reserve Bank of India's policy meet scheduled later this week.

"For bond markets, a 25 bps hike accompanied by a hawkish stance could trigger the 10-year bond yield to rise to 8.25 percent", Rao told Reuters after yields surged on Thursday.

The South Korean won shed around 1 per cent versus to the dollar to its weakest in more than two weeks. "It is because of the higher oil prices that weigh on the sentiment".

Emerging market central banks including Indonesia, Argentina, Philippines and Turkey have raised rates to contain inflation pressures and currency weakness with the U.S. Federal Reserve set to keep raising rates.

He said: "You can not wish away the depreciation in the rupee if you are a current account deficit country".

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The post, which had over 1,000 comments of condolences, said there would be a moment of silence in Thomas' honor Monday morning. A vigil for Thomas was held Sunday afternoon at the school's football field, where hundreds showed up in support.

On Thursday, the United States dollar touched 1.3828 against the Singapore dollar, its highest since Jul 11 previous year.

Among key stocks, the shares of Infrastructure Leasing & Financial Services (IL&FS) Group companies rallied by up to 20% in intraday trade amid reports the government may move to seize control of the management of an Indian financier that's roiled markets by defaulting on debt, with the move coming just after the beleaguered company unveiled details of a restructuring proposal.

To alleviate cash crunch fears, the RBI has unexpectedly outlined a large bond purchase programme worth 340 billion rupees ($4.61 billion) for October on top of 200 billion rupees of purchases last month. It has been continuously pressured this year by higher oil prices.

Consistent dollar demand from importers, mainly oil refiners, following higher crude oil prices, also kept the rupee under pressure.

The partially convertible rupee hit a life low of 73.82 per dollar before recovering to 73.62/63 by 0710 GMT.

Crude oil prices hit a four-year high in recent weeks as US oil sanctions on Iran loom next month.

India now imports more than two-thirds of its oil needs.

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