Rupee Near 67 Against USD. China Again To Be Blamed?
Sensex has tumbled sharply 450 points Thursday amid more than 7 percent crash in China stocks.
Sensex was below 25,000 and Nifty breached 7,600, which is the lowest level in more than three weeks. The currency too fell and is very close to Rs 67 against one dollar.
The Chinese market was suspended Thursday following the major plunge and sharp fall in its currency yuan. This is the second time in a week the country suspended trading.
As an aftermath the Indian rupee fell to 66.95 against dollar today. On Wednesday the rupee closed at 66.82 against USD.
The metal stocks were under strong selling pressure Thursday with concerns Chinese yuan would depreciate further and imports may become further cheaper.
Also, the oil stocks in the Chinese market tumbled after decrease in global crude prices to 11-year lows.
The Tata Steel, Hindalco, Vedanta and other metal stocks in the Indian market fell by 4 to 5 percent where as the Cairn India and ONGC tumbled 7 percent and 5 percent respectively.
The Chinese effect was also seen in other Asian markets. The Japan’s Nikkei plunged by 2.3 percent and Hong Kong’s Hang Seng slumped by 2.75 percent.
The Chinese yuan is currently to lowest since March 2011.