At the inter-bank foreign exchange market, the rupee sank 81 paise, to a over 32-month closing low of 52.15 against the dollar. The rupee fell on sustained dollar demand, and as domestic equities tumbled. The rupee has lost over 4 percent against the dollar in the last six trading sessions.
The Finance Ministry on Monday said that Reserve Bank has limited power to intervene in the foreign exchange to tackle the fall in rupee.
Talking to reporters in New Delhi , Secretary in Department of Economic Affairs R Gopalan said that RBI cannot turn around the declining situation overnight.
Sensex Falls 425 Points
Extending its losses for the eight straight session, the Sensex at the Bombay Stock Exchange tumbled 425 points, or 2.6 percent, to close below the psychological 16,000 mark, at 15,946 on Monday.
The market fell on heavy foreign fund outflows amid a depreciating rupee, and falling global markets. The Sensex has now lost more than 1,600 points in just eight trading sessions. The Nifty at the National Stock Exchange slumped 127 points, or 2.6 percent, to 4,778.
The bourses in Japan , China , Hong Kong , South Korea and Singapore fell between 0.1 percent and 1.4 percent. But the European markets took a much bigger hammering, on euro-zone debt worries.
