New Delhi: 5:10 pm: The rupee plunged to a record low on Wednesday to close at 66.80 vs US dollar.
4:15 pm: The markets have recovered after all the blood-letting with the Sensex closing up 28 points after recovering from a 500-point crash. The broader Nifty too recovered more than 160 points from the day's low.
3:08 pm: The rupee is trading at 67.81 against the US dollar. The markets have also recovered, the Sensex is up 80 points at 18,048.19 and Nifty is up 22 points at 5,310.30.
2:13 pm: Finance Minster P Chidambaram on Wednesday said that investors need to be taken into the confidence and more reforms are needed. "I believe what we need now is not less reforms but more reforms, not more restrictions but less restrictions. We have to add our reserves. Our reserves are adequate. We are one of the moderately indebted countries. Our external debt is only 24.10 per cent," he said.
"We have to add to our reserves by FDI, through NRI investments including deficits, by ECG and through banking capital. All options are on the table. No option is ruled out. Government will exercise the judgement at an appropriate time," he added.
12:40 pm: JDU leader Sharad Yadav said that the UPA government is still not worried but it is the government which has created the present economic crisis.
"They talk of foreign investment, where is the foreign money coming? We have never seen such a bad economic scenario, even election will not help the situation," he said.
Meanwhile, BJP leader Ravi Shankar Prasad took a potshot at the Congress, saying, "Manmohan Singh and Chidambaram have ran out of ideas." He compared the country's growth rate with that of BJP ruled states. He said, "Why is that at the same time the government in states of Gujarat, MP, Chhattisgarh and Goa have +10 per cent growth rate, it is because of good governance."
12:05 pm: CPI leader Sitaram Yechury said, "though Prime Minister Manmohan Singh says that the present situation is not different from that of 1991 but the situation is similar. The situation is worse as the rich are not investing. They are parking their money in either gold, property or foreign currencies."
11:58 am: The rupee and Sensex have recovered slightly, Sensex is down 294 points or 1.64 per cent at 17,673 while Nifty is down 97 points or 1.84 per cent at 5,189.95. Earlier, they were down by more than 400 points and 150 points respectively.
10:59 am: BJP leader Yashwant Sinha has said that the UPA government must resign to stabilise the falling rupee and markets. "The rupee is in a free fall. The only thing that will stabilise the rupee and the market is that the government resigns and we go for elections and new government is formed. This is not out of politics that I am saying it, he said.
BJP leader Prakash Javadekar slammed the UPA government for the rupee fall. "All the commodities will become expensive, because goods, transport, everything will go up, so there will be general price rise. Those presently employed will lose their jobs because of this disastrous situation. This is the man made crisis, this is UPA made crisis," he said.
The rupee breached the 68-mark in early trade on Wednesday, hitting a record low of 68.72 against the dollar.
The rupee on Wednesday opened at 66.90 vs US dollar. Rupee has fallen more than 6 per cent this week so far and more than 12 per cent since July 15 RBI moves.
Meanwhile, the market crashed further on Wednesday morning with the Sensex falling more than 400 points on weak rupee and strong crude oil prices.
The Sensex is down 481.44 points or 2.68 per cent at 5,125.30, and the Nifty is down 162.15 points or 3.07 per cent at 164.40.
Gold prices, too, touched a record high of Rs 34,492 per 10 grams on Wednesday.
Ashutosh Raina, HDFC Bank feels that geopolitical tensions continue to put pressure on global currencies. "Flight to seek dollar safety is expected to intensify pressures on the rupee in the short term. Range for the day is seen between 66.20-67.22/USD," he adds.
(With additional information from moneycontrol.com)####
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