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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Family-run burglary gang busted in Thane; 3 arrested, 2 minors detained
Thane (PTI): Two men and a teen have been arrested and their minor sons detained for allegedly carrying out a series of house break-ins and burglaries in Maharashtra's Thane district, police said on Sunday.
Earlier this week, the Mahatma Phule Chowk (MFC) police in Kalyan busted a family-run burglary ring in which the men scouted for locked houses and directed their sons to break in and steal valuables, a senior police official said.
Assistant Commissioner of Police (Kalyan) Ashok Honmane said that the police have arrested a 19-year-old man, two fathers and detained two minors, and recovered stolen gold ornaments worth Rs 21.6 lakh.
The matter came to light following a complaint lodged on May 8 in Kalyan West, following which a case of housebreaking and theft was subsequently registered, he said.
Acting on tip-offs, the police arrested Kailas Vilas Bhalerao (19), a resident of Mohane in Ambivali, on May 13, and detained two minors aged 14 and 15 years, the official said.
"Interrogation revealed that the fathers, Vilas Prakash Bhalerao (38) and Deepak Ashok Jadhav (40), used their daily jobs to recce houses in residential societies and would then pass on this specific information to their children," he said.
The arrested teen accused would target the houses along with the minors and decamp with cash and jewellery.
Investigations have revealed that the gang was involved in at least three other burglaries in the Kalyan area, the official said.
