Rupee slides to fresh all-time low of 83.78 against dollar on forex outflows
Mumbai, Jul 25: The rupee dropped by 7 paise to close at an all-time low of 83.78 against the US dollar on Thursday, dragged down by month-end dollar demand and foreign fund outflows.
Forex traders said foreign fund outflows from Indian equities following the government's decision to hike the tax rate on capital gains weighed on the local currency.
Analysts said the RBI, which was keeping the rupee steady by two-way support, may allow the rupee to weaken slightly to unwind the slightly real effective exchange rate and keep the currency competitive.
At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.66 and a low of 83.78 against the dollar during the session.
It finally settled at record closing low level of 83.78 against the American currency, down 7 paise from the previous close. On Wednesday, the rupee closed at 83.71 against the US dollar.
The local unit appreciated slightly during the intra-day trade on supposed intervention by the Reserve Bank of India (RBI) and overall weakness in crude oil prices, said Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.
Forex outflows from Indian equities due to the government's decision to hike the tax rate on capital gains dragged rupee to all time lows, dealers said.
Month-end dollar demand also weighed on the local currency.
In the domestic equity market, the 30-share BSE Sensex fell 109.08 points, or 0.14 per cent, to settle at 80,039.80 points, and Nifty dropped 7.40 points, or 0.03 per cent, to 24,406.10 points.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.17, lower by 0.21 per cent.
Brent crude futures, the global oil benchmark, fell 1.79 per cent to USD 81.25 per barrel.
Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 2,605.49 crore, according to exchange data.
According to Bank of America, the RBI may allow the rupee to weaken slightly to unwind the slightly real effective exchange rate and keep the currency competitive. It will support the government’s ambitions for attracting large-scale manufacturing investments, Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP said.
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Navdeep Singh's silver upgraded to gold in men's javelin throw F41 at Paralympics
Paris, Sep 7: India's Navdeep Singh's silver medal was upgraded to gold after Iran's Beit Sayah Sadegh was disqualified following a dramatic men's javelin throw F41 final at the Paris Paralympics on Saturday.
This is India's first-ever gold medal in the men's javelin F41 category.
Starting the competition with a foul, the 23-year-old para-athlete from Haryana, who had finished fourth at the Tokyo Games three years ago, came up with a throw of 46.39 metres in his second attempt, propelling him to the second place. But it was his third throw that electrified the stadium.
With a monstrous throw of 47.32 metres, Navdeep shattered the Paralympic record and surged into lead, only for Sadegh to better the Indian's mark and clinch the gold with a record-breaking effort of 47.64 metres in his fifth attempt.
However, the Iranian was disqualified some time after the end of the final, leading to the Indian athlete taking the top spot.
The F41 category is for athletes, who are of short stature.
