Sensex tanks 200 points as rupee hits another record low

The Indian rupee sank to yet another record low against the US dollar in early morning trade today, weighed down by weak local and regional shares.

The dollar was quoted at Rs61.16 in morning trade after touching 61.50, surpassing its previous record high of 61.21 reached on 8 July - showing that the month-old cash tightening steps by the Reserve Bank of India have so far failed to prop up the Indian currency..

Meanwhile the Bombay Stock Exchange Sensex plunged 200 points in morning trade, weighed down by the weakness of rupee, which hit a session low of 61.16 against the US dollar.

Tracking the weak momentum, the 50-share Nifty index slipped below its key psychological support level of 5650 to hit its lowest level since 27 June.

Asian markets too edged lower as traders turn cautious on expectations that the US Federal Reserve would start scaling back its stimulus as soon as next month.

"The dollar has weakened since Friday after a soft jobs report saw markets temper expectations the Fed could start scaling back its $85 billion-a-month bond-buying programme in September," Reuters reported.