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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Cong says LoPs not invited to Putin banquet, takes swipe at Tharoor for accepting invite
New Delhi (PTI): The Congress on Friday said Leaders of Opposition Mallikarjun Kharge and Rahul Gandhi have not been invited to the banquet for Russian President Vladimir Putin, and took a swipe at its own MP Shashi Tharoor for accepting the invite.
Congress general secretary in-charge communications Jairam Ramesh said, "There has been speculation whether the Leader of the Opposition in the Lok Sabha and the Leader of the Opposition in the Rajya Sabha have been invited for tonight's official dinner in honour of President Putin. The two LoPs have not been invited."
Congress' media and publicity department head Pawan Khera accused the government of breaking protocols daily and not believing in democratic principles.
"There is no invite to both the LoPs, Mr (Mallikarjun) Kharge and Mr (Rahul) Gandhi. This comes as a surprise but I don't think we should be surprised. This government is known to be breaching all protocols. What else to say, ask the government," he told PTI Videos on the sidelines of an event.
Asked about party MP Tharoor getting invited to the banquet and accepting the invitation, Khera said, "Ask Mr. Tharoor. All of us who are in the party, if our leaders don't get invited and we get invited, we need to question our own conscience and listen to our conscience. Politics has been played in inviting or not inviting people, which in itself is questionable and those who accept such an invite is also questionable," Khera said.
"We would have listened to our voice of conscience," he added.
Earlier, Tharoor said there was a time when the chairman of the external affairs committee was routinely invited but that practice seems to have stopped from some years.
"It has been resumed ...I have been invited, yes. I will definitely go," the chairman of the Parliamentary Standing Committee on External Affairs said.
On the LoPs reportedly not getting an invite, Tharoor said, "I don't know on what basis invitations were sent. I think the custom that usually used to be followed was for a wide representation. Certainly, I remember in the olden days, they used to invite not only the LoPs, (but) various other cross section of representatives of different parties. It conveys a good impression."
"I dont know the basis (of invitation), this is all done by the government, by the protocol by the Rashtrapati Bhawan, what do I know. All I can say I have honoured to have been invited. Of course I will go," Tharoor told reporters in the Parliament House complex.
Gandhi on Thursday had alleged that the government tells visiting foreign dignitaries not to meet the Leader of the Opposition due to its "insecurity".
His remarks had come hours ahead of Putin's two-day visit to India.
Gandhi had said it is a tradition that visiting foreign dignitaries meet the LoP but Prime Minister Narendra Modi and the Ministry of External Affairs were not following this norm.
"Normally the tradition is that those who come from abroad have a meeting with the LoP. This used to happen during (Atal Bihari) Vajpayee ji's time, Manmohan Singh ji's time, it has been a tradition but what happens these days is that when foreign dignitaries come and when I go abroad, the government suggests to them to not meet the LoP," Gandhi had told reporters in Parliament House complex.
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