Rupee falls 3 paise against US dollar on surging crude
Mumbai, (PTI): The rupee settled 3 paise lower at 83.28 against the US dollar on Wednesday, tracking negative cues from domestic equity markets amid surging crude oil prices overseas.
However, fresh foreign capital inflows and a weak greenback against major rivals overseas favoured the rupee and restricted the loss, forex traders said.
At the interbank foreign exchange, the domestic unit opened at 83.24 against the dollar and traded in a narrow range of 83.23 to 83.28. It finally settled at 83.28, registering a loss of 3 paise over its previous close.
On Tuesday, the rupee settled at 83.25 against the US dollar.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the rupee declined amid weak domestic markets and a jump in crude oil prices.
"However, the softening of the US dollar cushioned the downside. The US dollar softened as US President Joe Biden landed in Israel raising expectations that the Hamas-Israel conflict may get contained.
"This waned safe-haven demand for the US dollar. Dovish comments from US Federal Reserve officials also weighed on the greenback. Economic data from the US on Tuesday topped forecasts as retail sales and industrial production were better than market expectations," he said.
"USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.60."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.05 per cent to 106.20.
Brent crude futures, the global oil benchmark, witnessed a sharp rise of 3.05 per cent to USD 89.30 per barrel.
The Reserve Bank of India (RBI) appears to be actively intervening to prevent significant depreciation. Also, the weakness in the dollar provided some support to the rupee, Jateen Trivedi, VP Research Analyst at LKP Securities, said.
"Indian capital markets have seen substantial selling pressure, potentially due to a combination of global and domestic factors. Overall, the rupee remains weak in the near term, although RBI's intervention continues to provide some stability," Trivedi said.
On the domestic equity market front, the BSE Sensex closed 551.07 points or 0.83 per cent lower at 65,877.02. The broader NSE Nifty declined 140.40 points or 0.71 per cent to 19,671.10.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they purchased shares worth Rs 1,831.84 crore, according to exchange data.
"Foreign banks are buying US dollars, while public sector banks have been selling it. Even as strength in Asian peers provided some relief to the rupee, elevated oil prices continue to linger as a risk factor. Therefore, the rupee is expected to remain under pressure but in a tight range of 83.20 to 83.30 levels," Rinkle Vira, Fundamental Research Analyst, Anand Rathi Shares and Stock Brokers, said.
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Austrian police detain suspect in case of rat poison found in baby food jars on supermarket shelves
Vienna (AP): Police in eastern Austria say a 39-year-old suspect has been arrested after rat poison turned up in some HiPP baby food jars on supermarket shelves in central Europe.
HiPP, which recalled some of its baby food jars in Austria, Slovakia and the Czech Republic after the case came to light last month, said in a statement Saturday it was “greatly relieved” by the arrest, and would provide further updates as verified details come in.
The Burgenland State Criminal Police Office, under the direction of prosecutors, said a probe was launched after poison turned up in a baby food jar purchased at a supermarket in the city of Eisenstadt on April 18.
It said the suspect was being questioned, and that no further details would be immediately provided. The Burgenland public prosecutor's office has announced an investigation into suspected “intentional endangerment of the public.”
The Austrian Press Agency reported that an expert report on the toxicity of the poison was pending. A total of five tampered baby food jars were seized before they could be consumed, APA reported.
Authorities said previously they believe the tampering occurred in 190-gram (6.7-ounce) jars of baby food made with carrots and potatoes for 5-month-olds that were sold from SPAR supermarkets in Austria.
HiPP responded by recalling all of its baby food jars sold at SPAR supermarkets — which include SPAR, EUROSPAR, INTERSPAR and Maximarkt stores — in Austria as a precaution. Vendors in Slovakia and the Czech Republic also removed all of the brand's baby jars from sale.
The company said the recall was not due to any product or quality defect on its part, and said the jars left its facility in “perfect condition.”
Police said a customer at the time of the discovery had reported that a jar appeared to have been tampered with, but no one had consumed the baby food.
