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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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.
