Rupee slumps to 67.27 per dollar, Sensex tanks 350 points

The Indian rupee dropped around 2 per cent on Tuesday, breaching the key 67 per dollar mark again. The partially convertible rupee hit a low of 67.27 as against Monday's close of 66.

Analysts attributed fresh weakness in the currency to global dollar strength. The greenback strengthened against a basket of currencies, including Japanese yen, ahead of the U.S. jobs data due on Friday.

The rupee is still within striking distance of the all-time low of 68.85 to the dollar struck on August 28. Aggressive intervention by the Reserve Bank of India had helped lift the rupee off its low late last week. But the currency has depreciated around 16 per cent since May. The rupee remains the worst performing currency in Asia.

Emerging market currencies have been hit since the U.S. Federal Reserve first hinted that it was considering tapering off its bond buying stimulus.

The weakness in the rupee also spilled over to the stock markets, with the BSE Sensex dropping over 350 points after a strong start. The Sensex had earlier edged above the 19,000 mark in opening trade. The broader Nifty traded below the key 5,450 levels, falling 120 points.

The BSE Sensex traded down 350 points as of 12.39 p.m., while the rupee traded at 67.08.

(With inputs from Reuters)