Rupee slumps 18 paise against US dollar to 74.36
Mumbai: The rupee declined by 18 paise to close at 74.36 against the US dollar on Wednesday, tracking a strengthening American currency in the overseas market and higher crude prices.
However, a strong rally in domestic equities and unabated foreign fund inflows restricted the slide of the domestic unit, forex traders said.
At the interbank foreign exchange market, the local currency opened on a weak note at 74.24 and swung between the day's high of 74.18 and a low of 74.50 to the US dollar.
The rupee finally settled at 74.36 against the greenback, down 18 paise over its previous close.
The rupee had ended at 74.18 on Tuesday.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.15 percent to 92.87.
Meanwhile, Brent crude futures, the global oil benchmark, spiked 3.26 percent to USD 45.03 per barrel.
"Indian rupee depreciated amid strong dollar and surge in crude oil prices. Further, the rupee slipped on worries over a slowdown in global economic recovery due to a resurgence in COVID-19 cases.
"Further, the market remained cautious ahead of key macro-economic data like CPI and IIP... Rupee may trade in a range of 73.80 to 74.80 in the next couple of sessions," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
The BSE Sensex surged 316.02 points or 0.73 percent to close at a record 43,593.67.
Similarly, the broader NSE Nifty climbed 118.05 points or 0.93 percent to its all-time closing high of 12,749.15.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 5,627.32 crore on Tuesday, according to provisional exchange data.
"India CPI data is likely to show that Inflation remained above the Reserve Bank of India medium-term target range of 2-6 percent. India's Industrial Production data forecasted to show factory output contracted for 7 consecutive months," Mukadam added.
Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, said, "Indian rupee fell in line with other Asian currencies as dollar index rebounded and tracking the spike in crude oil prices. The rupee has been relatively weak even after strong foreign fund flows of around USD 2.3 billion in equities as RBI chose to absorb the flows rather than letting currency appreciate."
Oil futures rose after a report showed that US crude inventories fell by more than expected as prices continued to be supported by news of successful trials of a vaccine for coronavirus, he added.
Expectations of recovery have boosted Asian currencies and led to a broad-based rally in Asian shares and capped losses in the domestic unit, said Sriram Iyer, Senior Research Analyst at Reliance Securities.
"The Indian Rupee depreciated against the US Dollar on constant dollar-buying by state-run lenders, rumored to be on behalf of the central bank, to offset the impact of foreign inflows... So far the Indian equities and debt markets have already seen close USD 3 billion inflows this month and we believe that RBI could be present to mop the flows," he added.
"We expect the USD/INR (Spot) to trade higher and quote in the range of 74.05 and 74.50," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
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Delhi HC seeks Centre's stand on 'disappearance' of 70,000-kg heroin from seizure records
New Delhi, May 2: The Delhi High Court has sought the Centre's stand on a plea alleging disappearance of 70,772.48 kg of heroin from seizure records between 2018 and 2020.
Justice Subramonium Prasad issued a notice on a petition filed by B R Aravindakshan and asked the Centre to file its response within four weeks.
The petitioner, a journalist, has claimed that there is a huge discrepancy between the National Crime Records Bureau (NCRB) report and the data released by the Ministry of Home Affairs (MHA) regarding seizure of drugs in the country from 2018 to 2020.
"He (petitioner) states that cumulatively, 70,772.48 kg of heroin has
disappeared from seizure records between 2018 and 2020. Issue notice. Let replies be filed within four weeks," the court said in its order passed on Wednesday.
The petitioner has said "the alarming disappearance" of more than 70,000 kg of heroin, valued at approximately Rs 5 lakh crore in the international market, raises concerns of national security, social stability and economic repercussions.
The plea says the magnitude of the "discrepancy" is so large that if not sorted promptly, it may result in chaos in the society, but no action has been taken on the issue.
"On 12.09.2022, the petitioner filed a complaint before the MHA representing the data relating to the mismatch of data provided by NCRB and the data provided by Hon'ble Nityanand Rai, Minister of State, Ministry of Home Affairs, concerning seizure of heroin during the year 2018 and 2020.
"The petitioner insisted that 70,772.54 kg heroin worth Rs 5 lakh crore seized in India has been missing, thus insisting the ministry that an immediate investigation should be ordered for the safety and welfare of the country," the petition says.
The petitioner has sought several directions with respect to the alleged mismatch, including a direction to the MHA to order an investigation in a stipulated time period.
The matter would be heard next on September 9.
