Mumbai : Fortunes soured for stocks for the seventh day in a row as the Sensex Wednesday plunged a sharp 440 points to close at an over three-month low, triggered by a weakening rupee on concerns that foreign capital will move out sooner than later after Fed Chair Janet Yellen’s comments. Yellen, in a speech, said the US Federal Reserve should stick to gradual rate hikes despite the uncertainty about the inflation trajectory.
This was enough for foreign investors to hit the exit button, looking for instruments that yield better returns. The rupee took a hammering, sinking to over a six-month low of 65.75 against the dollar during the day. The lingering Korean stand-off dealt a further blow after US President Donald Trump dialled up his threats.
