Mumbai: 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.
The Indian rupee breached the 67-mark in early trade on Wednesday, hitting a record low of 67.37 against the dollar, down 113 paise from previous close.
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.
The dollar index inches lower to near 81 levels. The euro strengthens towards 1.34, while the yen records its biggest gains in 2.5 months against the dollar and euro as traders sought haven investments amid escalating tension in Syria.
Meanwhile in the global markets, the US markets finished sharply lower for the second session, with the Dow falling to a 2-month low, amid escalating worries over potential US military action in Syria.
From the precious metals space, gold prices rallied to a 15-week high as the geopolitical tension sparked a flight to safer investments.
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