Rupee at nine-month low, tracking fall in yuan; Sensex crashes 776 pts

Bank treasuries, and perhaps the RBI are closely tracking the yuan movement, and are devising strategies accordingly

The rupee fell 1.36 per cent against the dollar on Tuesday as Sensex fell 776 points, but it is the yuan, rather than the dollar, that is setting the mood for the currency markets these days.

The rupee closed at a nine-month low of 72.40 a dollar from its previous close of 71.42. 

Bank treasuries, and perhaps the Reserve Bank of India (RBI) are closely tracking the yuan movement, and are devising strategies accordingly. 

This gets even more apparent as even after the sharp fall in the rupee, the RBI did not intervene much in the market. Generally, when rupee moves about 50-60