Registering its biggest percentage fall in 18 years, the rupee plunged to a record low on Tuesday, slipping to below the 66-level mark against the US dollar on fears that rising global crude oil prices due to the simmering tension in West Asia would further inflate India’s high import bill.
The passage of the Food Security Bill also didn’t go down well with investors, as they fear the food subsidy will further strain the government’s finances.
While the rupee closed at 66.24 to the dollar, down three per cent from its previous day’s close, the Sensex tanked below its psychological 18,000 level to end the trading session at 17,968.08, down 590.05 points (3.18 per cent).
The Nifty slumped 189.05 points (3.45 per cent) to end the trading session at 5,287.45, as foreign institutional investors further cut their exposure to the Indian market, selling shares worth `1,373.99 crores.