Rupee slips 3 paise to 74.18 per USD
Mumbai: The rupee depreciated by 3 paise to close at 74.18 against the US dollar on Tuesday as higher crude oil prices and a stronger greenback overseas weighed on sentiment.
The rise in crude oil prices had a negative impact on the domestic unit, but robust domestic equities supported the rupee and restricted the fall, experts said.
At the interbank foreign exchange market, the domestic currency opened higher at 74.04 a dollar, but could not hold the momentum and finally settled 3 paise lower at 74.18.
During the session, the local unit reached a high of 74.02 and touched 74.30 at the lower end.
On Monday, the rupee had lost 7 paise to close at 74.15 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, strengthened 0.17 percent to 92.87.
Brent crude futures, the global oil benchmark, rose 1.34 percent to USD 42.97 per barrel.
In the equity markets, the 30-share BSE Sensex rose 680.22 points or 1.60 percent to close at its lifetime peak of 43,277.65.
The broader NSE Nifty too ended at a record 12,631.10, up 170.05 points or 1.36 percent.
"Rupee traded weak after the Reserve Bank of India (RBI) intervened in spot and then paid in forward to neutralize liquidity a kind of swap seen when the market needs to balanced.
"The range on rupee remains near 74.00-74.75. Crude prices also inching higher crossing USD 42 and USD 40 in Brent and WTI, respectively, can keep rupee little bit weak going ahead," said Jateen Trivedi, Senior Research Analyst (Commodity and Currency) at LKP Securities.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,548.39 crore on Monday, according to provisional exchange data.
"Central bank is absorbing a lot of dollar flows and that is restricting the appreciation of Indian currencies. For the third consecutive session Rupee traded near the 74 mark. In the last two days, WTI Crude oil prices rose around 10 percent on vaccine optimism and Biden's US Presidential victory," said Devarsh Vakil, Deputy Head Retail Research, HDFC Securities.
The rupee fell against the US dollar despite sharp gains in domestic and global equities, but primarily on the back of short covering and marginal rebound in dollar against its major crosses, said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
"Riskier assets got a boost after Pfizer said the experimental COVID-19 vaccine is more than 90 percent effective based on initial trial results," he further said.
On the domestic front, the focus will now be on inflation and industrial production data that will be released this week and price rise could keep the rupee gains in check, he added.
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London, Nov 22: A bomb disposal squad deployed as a “precaution” to the South Terminal of Gatwick Airport concluded an investigation into a "security incident" on Friday after making a “suspect package” safe.
The South Terminal of Gatwick Airport, the UK's second busiest airport after Heathrow, which was briefly shut owing to the incident reopened following the incident.
The Gatwick is around 45 km south of London.
Two people detained during the enquiries have since been allowed to continue their journey as the airport was opened.
“Police have concluded their investigation into a report of a suspect package at Gatwick Airport. Officers from the EOD (Explosive Ordnance Disposal) team made the package safe, and the airport has been handed back to its operator,” Sussex Police said in an updated statement.
“Two people detained while enquiries were ongoing have subsequently been allowed to continue their journeys. There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel,” the statement added.
Earlier on Friday, the incident caused severe disruption at the busy airport’s South Terminal, while the North Terminal of Gatwick Airport remained unaffected.
“Police were called to the South Terminal at Gatwick Airport at 8.20 am on Friday (November 22) following the discovery of a suspected prohibited item in luggage,” a Sussex Police statement said.
“To ensure the safety of the public, staff and other airport users, a security cordon has been put in place whilst the matter is dealt with. As a precaution, an EOD (Explosive Ordnance Disposal) team is being deployed to the airport. This is causing significant disruption and some roads around the South Terminal have been closed. We’d advise the public to avoid the area where possible,” it said.
Footage on social media taken outside the airport showed crowds of frustrated travellers being moved away from the terminal building.
Gatwick said it was working hard to resolve the issue.
“A large part of the South Terminal has been evacuated as a precaution while we continue to investigate a security incident," the airport said in a social media post.
“Passengers will not be able to enter the South Terminal while this is ongoing. The safety and security of our passengers and staff remain our top priority. We are working hard to resolve the issue as quickly as possible.”
Train and bus services that serve the airport were also impacted while the police carried out their inquiries.
In an unrelated incident in south London on Friday morning, the US Embassy area in Nine Elms by the River Thames was the scene of a controlled explosion by Scotland Yard dealing with what they believe may have been a “hoax device”.
“We can confirm the 'loud bang' reported in the area a short time ago was a controlled explosion carried out by officers,” the Metropolitan Police said in a post on X.
“Initial indications are that the item was a hoax device. An investigation will now follow. Some cordons will remain in place for the time being but the majority of the police response will now be stood down,” it added.
