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Sensex sinks and so does the Rupee to 66.50/US Dollar
The BSE Sensex and the Nifty opened sharply low on Monday morning. The Sensex lost 1000 points and fell to 26,359.53 and The Nifty slumped below 8,000 points, lowest in the last two months.

The India Rupee also fell to the US Dollar and closed at 65.83/Dollar on Friday. On Monday morning it further fell to almost 66.50/Dollar.

The drop in the Sensex is a domino effect of the Chinese equity markets. Shares of Shanghai nose dived to a 7.7 percent lower, its lowest levels in the past five months. In this month itself, Shanghai shares have lost more than 10 percent.

Asian stocks have dived 3 percent on Monday morning. Copper, which is an indicator of market trends was 6 ½ times lower, due to low demands and shaken investor confidence.

This trend has been visible in Asian markets ever since China had devalued its currency the yuan, almost two weeks ago. There are fears that the Chinese currency could be further devalued. The report card of the Chinese economy does not look good at the moment.

The devaluation of the yuan has effected almost all emerging markets. The South African rand is at its 14 year low, the Turkish lira also recorded lower levels and the Malaysian ringgit hit a 17 year low. The Indian Rupee is still better off in comparison to other emerging markets.

Raghuram Rajan, the RBI governor had stated last week that the devaluation of the yuan was not a cause of worry for India.

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