Rupee falls 6 paise to 90.62 against US dollar in early trade
Mumbai (PTI): The rupee depreciated 6 paise to 90.62 against the US dollar in early trade on Wednesday as geopolitical tensions and dollar demand from importers weighed on investor sentiments.
At the interbank foreign exchange market, the rupee opened at 90.56 against the US dollar, then lost some ground to touch 90.62, registering a loss of 6 paise over its previous close.
In the initial trade, the rupee also touched 90.46 against the American currency.
On Tuesday, the rupee pared initial losses and settled on a positive note, higher by 10 paise at 90.56 against the US dollar.
Forex traders said that while markets initially welcomed the India-US trade deal, fresh concerns have emerged after the White House released its fact sheet.
The fact sheet highlights key terms of the agreement, including that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.
This includes dried distillers’ grains, red sorghum, tree nuts, and fresh and processed fruit. Certain pulses, soybean oil, wine and spirits, and additional products, and India has committed to buy more American products and purchase over USD 500 billion of US energy, information and communication technology, agricultural, coal, and other products.
"The US document goes a step further than the February 6 joint statement by explicitly mentioning tariff reductions on additional American agricultural products, including certain pulses. This is a sensitive area for India — both politically and economically," CR Forex Advisors MD Amit Pabari said in a note.
Pabari said, "In the near term, the 90.00–90.20 zone continues to act as a strong support for the rupee. As long as this area remains intact, USD/INR could slowly move higher, with the 91.00–91.20 range emerging as the next potential upside zone in the coming sessions."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.14 per cent lower at 96.66.
Brent crude, the global oil benchmark, was trading 0.78 per cent higher at USD 69.34 per barrel in futures trade.
For India, as a major oil-importing country, higher crude prices mean a heavier import bill. And a heavier import bill almost always translates into pressure on the rupee, even if the impact is gradual, Pabari said.
On the domestic equity market front, Sensex rose 141.21 points to 84,415.13 in early trade, while Nifty advanced 51.95 points to 25,987.10.
On Tuesday, foreign institutional Investors purchased equities worth Rs 69.45 crore, according to exchange data.
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Birla asks LS secretariat to get 'faulty' notice to remove him 'rectified' to prevent its rejection
New Delhi (PTI): "Flaws" have been found in the notice submitted by opposition MPs to remove the Lok Sabha speaker from office, with Om Birla directing the secretariat to amend the "defective" notice to prevent it from being rejected, Lok Sabha sources said on Wednesday.
As many as 118 opposition MPs had signed the notice submitted to Lok Sabha secretary general Utpal Kumar Singh on Tuesday afternoon. Later in the day, the opposition withdrew the notice and replaced it with another one correcting the date.
Lok Sabha sources sad four instances of wrong date being mentioned were found, which could have led to the notice being dismissed under the rules.
However, Birla directed the Lok Sabha secretariat to get the defective notice amended and take action on it.
"Birla ordered prompt action as per the rules," a functionary said.
The notice will be listed after the start of the second phase of the Budget session from March 9.
Sources said upon receipt of the revised notice, a speedy review will be conducted as per the rules.
Opposition parties on Tuesday put in motion the process to oust Birla as Lok Sabha speaker, alleging that he had acted in a "blatantly partisan" manner in the House and prompting him to step aside from chairing the proceedings till the matter is settled.
Congress' deputy leader in the Lok Sabha Gaurav Gogoi, chief whip K Suresh and whip Mohamed Jawed submitted the notice under Article 94C of the Constitution to Lok Sabha Secretary General Utpal Kumar Singh on behalf of several opposition parties, including the Congress, Samajwadi Party and the DMK.
Lok Sabha secretariat officials said Birla, upholding the highest standards of morality, has decided not to sit in the Speaker's chair until the no-confidence motion moved against him is settled.
The officials said the no-confidence motion against the speaker was likely to be taken up on March 9, when the House reassembles after the recess to examine budgetary proposals.
Article 94C of the Constitution deals with provisions for the removal of the speaker or the deputy speaker of the Lok Sabha.
Article 96 of the Constitution gives the speaker an opportunity to defend himself or herself in the House.
The speaker can cast his vote when the motion for his removal is moved in the House. But he cannot cast his vote in case of a tie.
