Indian rupee tumbled by more than a percent to its two-week low as worries about a slowdown in China and turmoil in some emerging markets resulted in rupee selloff.
Domestic equity markets tracked negative cues as Nifty plunged by more than a percent before ending the day at levels of 6266.8 with a loss of 78.9 points.
Market expects Reserve Bank Governor Raghuram Rajan to hold interest rates at its policy review meeting on Tuesday and does not expect a rate reduc-tion even in March.
Argentina’s currency, the peso, plunged more than 8 percent on Thursday against the dollar after the country’s central bank tried to stem a decline in in-ternational reserves.
US Fed is expected to continue to scale back its bond purchases when it meets next week - heaping more pressure on emerging-country currencies.
Dollar index gained marginally after suffering its biggest one-day fall in four months, undermined by a drop in US benchmark yields to a six-week low.