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Foreign Portfolio Investors have withdrawn over Rs 12,000 crore from Indian equities so far this month, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the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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Indore MBA student's classmate abused body after killing her, performed witchcraft: Police
Indore (PTI): The classmate of a 24-year-old female MBA student, arrested in Indore for her murder, allegedly abused the body after the killing and also performed occult rituals while on the run, police said.
On February 13, people complained of a foul smell emanating from a closed house in the city's Dwarkapuri police station area.
After police arrived at the scene, the naked body of a 24-year-old woman was found in the house.
The woman was pursuing a Master of Business Administration (MBA) degree from a city college and the body was found in her classmate's rented house, Deputy Commissioner of Police (DCP) Shrikrishna Lalchandani told PTI on Monday.
The classmate fled after the incident. He was taken into custody in Mumbai and is being interrogated after his arrest, the official said.
Referring to the accused's interrogation, the official said he allegedly strangled his classmate to death and then "abused" the body.
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"The accused also performed witchcraft near Panvel (in Navi Mumbai) while on the run. The accused claims that he was mentally disturbed after the murder and wanted to communicate with the woman's spirit through witchcraft," he said.
According to the DCP, the woman and the accused were in a close relationship.
"The accused suspected that she was talking to other men. Enraged, he killed her and fled," the official said.
After the woman's body was found, her father accused the classmate of trying to extort money from his daughter using her obscene photos and then torturing her to death.
The accused had even posted these photos on her college WhatsApp group, he alleged.
