Rupee falls 4 paise against USD amid strengthening US bond yields
Mumbai, (PTI): The rupee dropped 4 paise to 83.16 against the US dollar on Monday due to sharp losses in local stocks and US bond yields surging to 5 per cent.
Easing crude oil prices and a flat greenback in the overseas markets helped cap the rupee's fall, forex dealers said.
At the interbank foreign exchange market, the local unit opened lower at 83.15 and traded in a tight range of 83.19 and 83.09 against the greenback during the day.
The local unit finally settled at 83.16, reflecting losses of 4 paise over the last close. On Friday, the rupee closed flat at 83.12 against the US dollar.
Forex markets will remain closed on Tuesday on account of Dussehra.
Analysts said hardening US bond yields amid a higher risk of broader conflict in the Middle East weighed on emerging currencies and riskier assets. The 10-year US Treasury was at 5 per cent on Friday.
"The rupee experienced weakness during the trading session. Concerns regarding potential escalations in geopolitical issues in the Middle East have contributed to this negative sentiment.
"Furthermore, the continued selling by Foreign Institutional Investors (FII) in the capital markets has put downward pressure on the rupee. It is important to note that while RBI interventions have been instrumental in stabilising prices and preventing the rupee from falling below 83.25, global uncertainties and geopolitical tensions can still have an adverse impact on the rupee's value," Jateen Trivedi, VP Research Analyst at LKP Securities said.
Increased apprehensions surrounding prolonged elevated interest rates fuelled a continued upward movement in the US 10-year yield, Vinod Nair, Head of Research at Geojit Financial Services said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, retreated from overnight highs and was almost flat at 106.21.
Crude oil prices eased on Monday, with the benchmark Brent crude declining by 0.23 per cent to USD 91.95 per barrel.
On the domestic equity market front, Sensex tanked 825.74 points or 1.26 per cent to settle at 64,571.88. The Nifty plunged 260.90 points or 1.34 per cent to 19,281.75.
Foreign Institutional Investors bought equities worth Rs 252.25 crore on Monday, according to exchange data.
Foreign Portfolio Investors have withdrawn over Rs 12,000 crore from Indian equities so far this month, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict.
"Given the prevailing dynamics, the rupee's trading range is anticipated to remain within 82.85-83.30. However, the rupee's performance remains sensitive to global events and market sentiment," Trivedi said.
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Will continue to work as party worker, says former PM Deve Gowda
Bengaluru(PTI): Former Prime Minister H D Deve Gowda, who turned 92 on Sunday, said he would continue to work as a party worker. The JD(S) patriarch celebrated his birthday in his party office.
"If you ask me what next, then I will tell you that I have a habit of not sitting idly in one place. I will toil as a worker for the party. I won’t say more than this," Gowda told reporters here.
The former PM, however, regretted not being able to go to Tirupati to offer his obeisance on his birthday.
"I had a habit of going to Tirupati on my birthday but due to knee pain I am not able to go there anymore," Gowda said.
He also thanked everyone who wished him on his birthday.
The JD(S) supremo declined to give any political statement, saying that this was not the day for it.
Gowda was born on May 18, 1933 in his ancestral village Haradanahalli in Hassan district. He served as the 11th Prime Minister of India for 10 months from June 1, 1996 to April 21, 1997.
The JD(S) supremo was also the Chief Minister of Karnataka from December 11, 1994 to May 31, 1996.
Prime Minister Narendra Modi joined several leaders on Sunday in extending birthday greetings to Gowda.
In a social media post, Modi wrote, "Birthday wishes to our former Prime Minister Shri HD Deve Gowda Ji... May he be blessed with a long and healthy life."
The PM said Gowda is widely respected for his statesman like approach and passion towards public service.
His wisdom and insights on several issues are a source of great strength, he added.
In his message on 'X', Chief Minister Siddaramaiah said, "Happy birthday to the country's senior politician and former Prime Minister H D Deve Gowda. I pray to God to bestow upon him good health and long life."
Senior BJP leader B S Yediyurappa and his son B Y Vijayendra, who is BJP Karnataka unit president, also wished Gowda on his birthday.
