WEB DESK
Due to a global rout in currencies on fears of an economic crisis in Turkey, the rupee on Monday nosedived by Rs 1.09 to close at an all-time low of Rs 69.92 against the US dollar. It was biggest single-day fall in almost five years.
The apprehensions about turmoil in the Turkish economy engulfing world markets also pushed the Indian stock market index into a tailspin. The benchmark Sensex and Nifty fell over half a per cent each, with metals and banking stocks leading the fall.
The fall in the broader market was sharper, with two stocks declining for every one advancing on the BSE. The Sensex declined 0.6 per cent, or 224 points, to end at 37,644.9, while the Nifty fell 0.65 per cent, or 74 points, to close at 11,356. Lack of foreign institutional investment inflows and growing oil prices are also affecting the rupee.
Foreign investors sold shares worth Rs 9.72 billion on net basis, the provisional exchange data showed.
The US dollar strengthened against other currencies after the Turkish lira dived almost 8 per cent, sparking a sell-off in the global markets. “The rupee was mainly affected by the fall in the Turkish lira,” Treasury executives said.