Mumbai, Oct 4 : The rupee crashed to a new all-time low of 73.77 against the US dollar on Thursday thus plunging the Sensex by over 550 points to slip below the 36,000-mark amid soaring crude oil prices.
The government will hold an inter-ministerial meeting on Thursday to discuss currency weakness and its impact on trade deficit.
The rupee is likely to fall further due to rise in crude oil prices.Commerce and Industry Minister Suresh Prabhu will chair an inter-ministerial meeting on Thursday to discuss rupee depreciation and widening of trade deficit. Representatives from the department of economic affairs, coal ministry, steel ministry, oil ministry and department of pharmaceuticals are expected to attend the meeting.
“Higher crude prices are likely to prevail over liquidity easing measures announced by the RBI. The next domestic trigger would be the tone of the RBI policy on Friday,” said IFA Global, a forex advisory firm.
The Sensex was down by 550.51 points or 1.51 per cent at the Wednesday’s closing. In the day’s trade, the barometer 30-scrip sensitive index had touched a high of 36,602.85 points and a low of 35,911.82 points. The Nifty, was down by 150.05 points or 1.36 per cent.
The Sensitive Index (Sensex) of the BSE, which had closed at 35,975.63 points on Wednesday, opened lower at 35,820.53 points.
Minutes into trading, it was quoting at 35,603.53 points, down by 372.10 points, or 1.03 per cent.
At the National Stock Exchange (NSE), the broader 51-scrip Nifty, which had closed at 10,858.25 points on Wednesday, was quoting at 10,697.15 points, down by 161.10 points or 1.48 per cent.
Rise in crude oil prices, along with a weak rupee and outflow of foreign funds, had dragged the key domestic equity indices lower over one per cent on Wednesday.
In addition, fears over the central bank turning aggressive in its monetary policy stance due to a rise in inflationary pressure also led to erosion in investors’ risk-taking appetite.
On Thursday, Asian indices were showing a negative trend. Japan’s Nikkei 225 was quoting in red, down by 0.72 per cent while Hang Seng was down by 1.80 per cent, South Korea’s Kospi was also down by 1.41 per cent.