Rupee crashes 139 paise to 94.90 against US dollar in early trade
Mumbai (PTI): The rupee crashed 139 paise to 94.90 against the greenback in early trade on Monday after President Donald Trump rejected Iran's response to the US's peace proposal, following which crude oil prices surged rapidly.
A strengthening US dollar and steep FPI outflows further pressured the local unit, according to forex traders.
At the interbank foreign exchange, the rupee opened at 94.97 against the US dollar before inching up to 94.90, down a staggering 139 paise from its previous close.
On Friday, the rupee pared its losses and ended with a sharp gain of 71 paise at 93.51 against the greenback.
Iran has sent its response to the latest US ceasefire proposal via Pakistani mediators and wants negotiations to focus on permanently ending the war, Iran's state-run media said on Sunday.
Trump rejected Iran's proposal to end the months-long war as "totally unacceptable" without sharing details even as a key Republican leader urged him to consider the "military option".
"After US President Donald Trump rejected Iran's response to the US Peace proposal, Brent oil rose higher, dollar index also higher and risky assets lower. Israeli attacks on Lebanon continued while Hezbollah said it struck Israeli army camps with drones while the UAE also intercepted drones from Iran," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
"Thus the war continues keeping oil prices higher and accordingly rupee opened lower than Friday's close," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 98.20, up 0.20 per cent.
Brent crude, the global oil benchmark, rose sharply by 4.17 per cent to USD 105.5 per barrel in futures trade.
On the domestic equity market front, Sensex plummeted 810.35 points, or 1.05 per cent, to 76,517.84, while the Nifty tanked 225.40 points, or 0.93 per cent, to 23,950.75.
Foreign Institutional Investors offloaded equities worth Rs 4,110.60 crore on Friday, according to exchange data.
India's forex reserves dropped by USD 7.794 billion to USD 690.693 billion during the week ended May 1, the RBI said on Friday. In the previous reporting week ended April 24, the overall reserves declined by USD 4.82 billion to USD 698.487 billion.
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Ex-army chief Naravane backs RSS leader's remarks on dialogue with Pakistan
Mumbai (PTI): Former army chief Gen (retd) Manoj Naravane on Wednesday supported RSS leader Dattatreya Hosabale's stand on the desirability of willingness to have a dialogue with Pakistan, stating that friendship between the two peoples can lead to better bilateral relations.
"Common people live on both sides of the border, with common problems of 'roti, kapda and makan (food, clothing and shelter). Common man has nothing to do with politics. When there is friendship between the two peoples, there will also be friendship between the two nations," Naravane told PTI on the sidelines of an event here.
"It is a right thing. People-to-people contact is important," he added.
People-to-people contact is key to breaking the deadlock with Pakistan and there should always be a window for dialogue, Hosabale said in an interview to PTI Videos on Tuesday. Pakistan's military and political leadership have lost India's confidence and it is time for civil society to lead the way, the RSS leader said.
Naravane said there should be a people-to-people connect between the two countries, be it through 'track two' diplomacy or even a sporting event.
"Even our people should know that those staying across the border are not sworn enemies," the former army chief said.
"Disputes should be resolved through discussion, but this does not mean we cannot use military force. India is a country that speaks the language of peace but we will not hesitate to use force if needed," Naravane added.
VIDEO | Mumbai: On RSS leader Dattatreya Hosabale advocating window of dialogue with Pakistan to be kept open, Former Army chief Gen MM Naravane (@ManojNaravane) says, “One important point is that people-to-people connections and contacts are extremely important. Ordinary people… pic.twitter.com/3pMmvynm43
— Press Trust of India (@PTI_News) May 13, 2026
