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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Assam to lift all cases against Koch Rajbongshis in Foreigners' Tribunals: CM Himanta Biswa Sarma
Guwahati, Apr 4 (PTI): The Assam cabinet has decided to lift all cases pending against people from the Koch Rajbongshi community in the Foreigners' Tribunals, Chief Minister Himanta Biswa Sarma said on Friday.
They will also no longer carry the tag of 'D' or doubtful voters, he said.
''There are 28,000 cases pending in different Foreigners' Tribunals in the state against people of the community. The cabinet has taken a historic decision of lifting the cases with immediate effect,'' Sarma said at a press conference here after the cabinet meeting.
The government believes that the Koch Rajbongshis are an indigenous community of the state and they are an inextricable part of ''our social and cultural fabric'', he asserted.
The people of this community are poor and have suffered a lot over the years, he said.
''They will no longer carry the tag of foreigners or ‘D’ voters,'' the CM said.
Foreigners Tribunals are quasi-judicial bodies, particularly in Assam, established to determine if a person residing in India is a "foreigner" as defined by the Foreigners Act of 1946, based on the Foreigners (Tribunals) Order of 1964.
These tribunals are designed to address matters related to citizenship and the presence of “foreigners” in India, specifically focusing on cases where someone is suspected of being an illegal immigrant.
There are 100 Foreigners’ Tribunals across Assam.
The Koch Rajbongshis have a sizeable presence in Assam, West Bengal, Meghalaya, and parts of Bangladesh, Nepal, and Bhutan, and they demand Scheduled Tribe status.
