The rupee today plunged to a new record of 71.43 againt the dollar, a fall of 22 paise over Monday's close. The sharp drop in the rupee continued, as the dollar gained against a basket of currencies.
The Indian rupee this year has lost 10.2 percent to the dollar and is Asia's worst performer. At 3 pm, the rupee was seen trading at 71.43 to the dollar.
A rally in global crude oil prices, concerns over US-China trade war and contagion risks from Turkey and Argentina's fall in currency valuations have impacted the forex market sentiments.
Meanwhile, the stock markets fell even further, after a meltdown seen on Monday. The Sensex was trading with losses of 150 points, while the Nifty lost 60 points in trade by 3 pm. Most of the losses were seen in counters like Vedanta, Coal India, HPCL and Adani Ports.
Software shares like Infosys and TCS, led the rally, as the weak currency would benefit these companies. In fact, TCS crossed the Rs 8 lakh crore in market capitalization. Shares in SUN TV fell a huge 7 per cent, with heavy volumes.
Asian stocks were mixed Tuesday amid continuing concerns about stability in emerging markets and prospects for escalating U.S.-China trade tensions. The US dollar and Treasury yields held steady.