Food Bill spooks `, MKTS

closes at 66.24 against $; Sensex drops 590 pts

Mumbai (Agencies): Worries about the Food Security Bill dragged the rupee to a fresh lifetime low of 66.30 to the US dollar on Tuesday before closing at 66.24 as the market ignored government assurances on keeping the fiscal deficit in check. The BSE benchmark Sensex also snapped its three-day rising streak and nosedived over 590.05 points to end below the 18,000-level at 17,968.08 on increased capital outflow due to the rupee's record lows against the dollar amid concerns the food bill would raise subsidy burden. On similar lines, the broad-based National Stock Exchange index Nifty fell below a crucial 5,300 level by dropping 189.05 points.

The rupee registered the biggest single day fall of 194 paise in 18 years amid weak local equities, dollar demand from importers and banks, outflows and rising oil prices. At the interbank foreign exchange market, the rupee resumed lower at 65 a dollar from the previous close of 64.30 and remained in negative terrain through the day. It dropped to a record intra-day low of 66.30 before settling a tad better at 66.24, a fall of 194 paise or 3.02 per cent. The rupee had plunged 148 paise on August 19. The previous lifetime low was 65.56 on August 22.