Indian rupee nears 60, Sensex dives 400 points on Fed concerns.

Mumbai: The Indian rupee on Wednesday fell to an all-time low of 59.93 per dollar in the opening trade after the US Federal Reserve chairman Ben Bernanke said the central bank would start reducing its stimulus measures later this year if the economy is strong enough.

The BSE benchmark Sensex fell as much as 423 points to 18,822.65 in early trade on Thursday. Market were also hit by data showing China’s factory activity weakened to a nine-month low in June.

The partially convertible rupee opened at 59.62 against the dollar, breaching past its all-time low of 58.98 on 11 June, as compared with its Tuesday’s close of 58.72.

At 9.34am, the domestic currency was trading at 59.87 per dollar, down 1.92% from its previous close, while India’s equity benchmark Sensex was trading at 18,872.81 points, down 1.94%.

Bond yields jumped, with the benchmark 7.16% 2023 bond yield rising 10 basis points to 7.36% from its previous close. Meanwhile, the Reserve Bank of India has halted trading in bonds following the sell-off.

Source : livemint.com