The rupee fell sharply against the US Dollar in early trade and was last trading at 66.36 to the dollar, a huge drop of 56 paise over Monday's close.
64.904 United States Dollar
The Reserve Bank of India may intervene at the current levels as it would remain comfortable with the rupee at levels of around 66. This would be on account of the fact that it would want to keep exports competitive in the wake of the recent devaluation of the Chinese Yuan.
Meanwhile, markets across the globe saw a huge correction with the Shanghai Composite down a huge 8 per cent, while the Hang Sang Crashed 4 per cent and the Taiwan Weighted 4 per cent.