Rupee falls to 64 per dollar, a new all time low; Sensex down around 300 points

The rupee fell to a record low on Tuesday to 64 per dollar in early trade, breaching the previous low of 63.30 on Monday. Sensex opened over 290 points down and Nifty over 90 points down also.

The Indian currency hit an all-time low on Monday losing 148 paise as the mayhem in money and equity markets continued from last week, broadly reflecting the government's and the Reserve Bank of India's (RBI's) inability to control a free-falling domestic currency despite a string of measures.

Shares continued to bleed under intense selling pressure and plunged to multi-month lows on Monday as worries mounted about deteriorating macro-economic concerns on the back of sliding rupee, which slumped to new low against the US dollar.

Hammered by relentless selling pressure, the Bombay Stock Exchange's benchmark 30-share Sensex index plunged 291 points to close at a four-month low of 18,307.52, down 1.56%.

Similarly, the 50-issue NSE CNX Nifty also dipped by 93.10 points, or 1.69%, to end at 5,414.75 -- the lowest since September 2012.

Investor confidence has taken a massive hit due to the recent measures announced to curb capital outflow to stem forex volatility and narrow down worsening current account deficit (CAD), sparking fears about downgrading India's sovereign credit rating.