The rupee today hit a new record of 72.46 against the dollar, dropping by a whopping 72 paise against the American currency. Even as the rupee hit a lifetime low of 72.46, on sustained dollar buying, here are a few things you should know.
1) The drop in the rupee came as Moody's said that the recent fall was credit negative for India Inc, especially companies that generate rupee revenue, but have loans in dollar terms.
2) The Sensex sank in line with the sharp fall of the rupee against the dollar and lost as much as 329 points. The Nifty too lost as much as 107 points in noon trade.
3) There was an overall strong demand for the dollar, which kept pressure on the Indian rupee. It is likely that the rupee may now hit 73 to the dollar.
4) Stocks from the IT sector rallied, as a weak rupee tends to benefit these companies. Infosys was the leading gainer from the sector, with an uptick of near 2 per cent.
5) Bond yields hit their higher level since late 2014, with the 10-year yield rallying to 8.12 per cent. This led some banking stocks to fall.
6) The Reserve Bank of India may intervene even further, should the currency fall, as petrol and diesel prices have been gaining sharply.
7) In line with the falling rupee, petrol and diesel have scaled record highs. In Mumbai, petrol prices were retailing at a new record of 88.12 per litre. In all Indian cities, petrol and diesel were at a record high.