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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Asaduddin Owaisi pays tribute to SM Syed Khalil, calls him great personality of Nawayat Community
Hyderabad: Hyderabad MP and AIMIM Chief Asaduddin Owaisi expressed his condolences on the passing of SM Syed Khalil, a prominent businessman and philanthropist from Bhatkal. In a tweet, Owaisi referred to Syed Khalil as “Khalil Bhau,” fondly acknowledging his significant contributions to the Nawayat community and his work for the poor and needy.
“My condolences to the family of SM Syed Khalil saheb. He was affectionately called as Khalil Bhau, a great personality from the Nawayat Community. He headed many social organizations and helped many poor and needy people. A great loss to the people of Bhatkal. Will miss you, Khalil Bhau,” Owaisi tweeted.
SM Syed Khalil, who passed away in Dubai early Thursday morning after a brief illness, was a respected leader in the Nawayat community and a source of pride for Bhatkal. Known for his extensive contributions to international trade, education, and social service, Khalil’s life was marked by a commitment to uplift the underprivileged and strengthen community ties.
Among his many achievements, Syed Khalil was the Founder Chairman of K&K Enterprises in Sharjah and played a pivotal role in the success of the Galadari Company in Dubai over three decades. He also served as the Chairman of Madhyama Communications Ltd., Mangalore, and was actively involved in promoting Kannada and Konkani languages and culture.
In Bhatkal, he was a guiding force behind institutions like Anjuman Hami-e-Muslimeen and Rabita Society, where he championed girls’ education and worked to improve opportunities for the community. His leadership, humility, and compassion earned him widespread respect, and his contributions extended far beyond Bhatkal, touching lives across Karnataka and beyond.
My condolences to the family of SM Syed Khalil saheb he was affectionately called as Khalil Bhau a great personality from Nawayat Community,he headed many social organisations helped many poor and needy people,great loss to the people of Bhatkal ,will miss you Khalil bhau pic.twitter.com/piHjCCRD5d
— Asaduddin Owaisi (@asadowaisi) November 21, 2024
