Rupee rises 49 paise to 89.17 against US dollar in early trade
Mumbai (PTI): The rupee rebounded on Monday from record lows, rising 49 paise to 89.17 against the greenback in early trade on US dollar selling by banks and a dip in global crude oil prices.
A positive opening in the domestic equity markets and intervention by the Reserve Bank of India (RBI) lent support to the domestic unit, according to forex traders.
The rupee opened at 89.46 against the greenback before rising to 89.17, up 49 paise from its previous close.
The rupee plunged 98 paise to close at its lifetime low of 89.66 against the US dollar on Friday, due to a huge demand for the greenback in the domestic forex market amid widespread selling pressure in local and global equities and trade-related uncertainties.
In the steepest fall in over three years, the domestic currency nosedived 98 paise to finally settle at 89.66 against the American currency.
The previous biggest one-day fall was recorded at 99 paise against the dollar on February 24, 2022.
"Most traders believe that rupee may not cross 90 as it may remain protected for a few more weeks and expect a positive (India-US) trade deal outcome by December-end. The market is bracing for more weakness after the rupee slid to a record low on Friday," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
In the absence of a trade deal, the 90-mark doesn't seem quite distant now, he added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was marginally up by 0.01 per cent at 100.18.
Brent crude, the global oil benchmark, was trading 0.10 per cent lower at USD 62.50 per barrel in futures trade.
On the domestic equity market front, the Sensex climbed 218.44 points to 85,450.36 in early trade while Nifty was up 69.4 points to 26,137.55.
Foreign institutional investors sold equities worth Rs 1,766.05 crore on a net basis on Friday, according to exchange data.
India's forex reserves jumped USD 5.543 billion to USD 692.576 billion during the week ended November 14 due to a steep increase in the value of gold reserves, the RBI said on Friday.
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K'taka remains central to Aequs' strategy, says min Patil amid row over firm's investment in TN
Bengaluru (PTI): Karnataka Commerce and Industries Minister M B Patil on Monday asserted that Aequs continues to expand in the state and that its proposed investment in neighbouring Tamil Nadu was a business decision aimed at diversification, not a shift away from Karnataka.
Reacting to criticism on social media over reports that the Karnataka-based firm had signed a major investment deal in Tamil Nadu's Krishnagiri district for setting up a specialised aerospace and defense manufacturing cluster, he said the state government was fully aware of the company's plans and remained confident about its long-term commitment to Karnataka.
"While we welcome every major investment in India, would like to clarify a few points," Patil said in a post on 'X'.
Aequs was significantly expanding its footprint within Karnataka, including a Rs 3,000 crore investment in Kolar for electronics manufacturing.
"Its recently approved Rs 1,500 crore ECMS project will also be grounded in the state. Karnataka remains central to its long-term strategy," he said.
Patil added that the government had prior knowledge of the TN proposal.
The government was already informed and aware that the TN investment is a business decision aimed at geographic diversification and de-risking operations, not a shift away from Karnataka.
"Healthy competition between states strengthens India's manufacturing ecosystem," he said.
Emphasising the state's focus on high-technology sectors, Patil said, "We remain committed to deepening Karnataka's leadership in aerospace and advanced manufacturing, and our engagement with industry partners is strong and ongoing."
The Aequs Group has pledged Rs 4,000 crore to bolster Tamil Nadu's aerospace manufacturing capabilities at the SIPCOT-Shoolagiri Industrial Park in Krishnagiri district.
The group proposes to establish a specialised aerospace and defense manufacturing cluster for the production of aircraft engines, gearbox components, and precision engineering parts. This initiative is expected to provide employment to 7,000 individuals.
