Rupee hits new low, drops to 73.91 against US dollar; Sensex plunges 850 points

The domestic currency closed at a record low of 73.34, down by 43 paise or 0.59 per cent on Wednesday.

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Mumbai: The rupee collapsed to a fresh low of 73.91 against the US dollar Thursday, as global oil prices continued to rise, deepening concerns about the current account deficit and capital outflows. Sensex also opened with major losses on Thursday amid rupee's fresh fall against the USD. Sensex dropped 850 points. The NSE Nifty index too fell 164.60 points, or 1.53 per cent, to 10,693.65. Consistent dollar demand from importers, mainly oil refiners, following higher crude oil prices, kept the rupee under pressure. Meanwhile, state-owned oil marketing companies have been allowed to raise USD 10 billion from overseas market to meet their working capital needs. The international benchmark Brent crude breached the US 86 per barrel level, near its four-year high. The fuel prices also witnessed a steep rise where  Petrol and Diesel prices in Delhi increased by Rs 0.15 and Rs 0.20, respectively.  In Mumbai, the price of fuel continues its record-breaking climb with an increase of Rs 0.14 and Rs 0.21 on petrol and diesel, respectively. At the interbank foreign exchange, the rupee opened lower and slipped further to a fresh low of 73.77 a dollar against 73.34, a fall of 43 paise. The domestic currency closed at a record low of 73.34, down by 43 paise or 0.59 per cent on Wednesday. Elsewhere in Asia, Hong Kong's Hang Seng, Japan, Singapore and Taiwan were trading sharply lower by falling over 1 per cent. (with input from agencies)