Rupee nears its all-time low on global cues; Sensex drops 306 points

The rupee dropped 0.6 per cent to a 17-month low of 68.42 against the dollar

The rupee and stocks tumbled along with other global markets on Wednesday after the US dollar strengthened, as events across Italy, Turkey and North Korea triggered risk-off bets.

Investors pulled out money out of risky assets on fears of Italy exiting the eurozone. The sentiment was hurt as prospects of trade talks between the US and China and a summit with North Korea faded. Most emerging market currencies tumbled after a slide in the Turkish lira sparked fears of contagion. The dollar index, a gauge for the greenback’s performance against major global currencies, breached 94 for the first time in 2018.