Rupee breaks 3-day rally, down 3 Paise at 63.87 a dollar
Mumbai: Snapping its three-session winning run, the rupee today ended lower by 3 paise at 63.87 against the US currency following fresh bouts of dollar demand from importers amid the US political jitters.
Trading was extremely volatile as the currency market witnessed wide swings against the backdrop of US government shutdown.
The US government shutdown went into effect at midnight on Friday after Senate negotiators failed to reach an agreement on a last minute deal to keep the government funded amid a dispute over immigration and border security.
The domestic currency oscillated between a high of 63.71 and a low of 64 a dollar.
However, the record-breaking rally in local equities along with robust capital inflows somewhat cushioned the impact of the fall.
In the meantime, country's foreign exchange reserves rose for a fifth consecutive week to yet another record high of USD 413.825 billion in the week to January 12, the RBI said.
Foreign funds and overseas investors continued their portfolio-buying spree and infused a whopping Rs 8,700 crore in the Indian capital markets this month so far on expectation of recovery in corporate earnings and attractive yields.
According to the depositories data, FPIs infused in a net amount of Rs 5,769 crore in equities and Rs 2,940 crore in the debt markets.
In the international commodity front, crude prices rebounded after a brief fall, largely helped by a drop in US drilling activity and also impacted by fighting in Syria between Turkish forces and Kurdish fighters.
Brent crude futures were trading higher at USD 68.79 a barrel in early Asian trading.
Meanwhile, domestic markets continued their relentless upward march for the fourth session on frantic buying activity in key front-line stocks induced by acceleration in corporate earnings growth and growing optimism ahead of the Budget 2018.
In contrast, most Asian stock markets were mixed and rather muted overshadowed by US political turmoil.
The flagship BSE-Sensex shot up over 286 points to end at 35,798.01, while Nifty soared 72 points at 10,966.20.
At the Interbank Foreign Exchange (forex) market, the rupee opened lower at 63.88 as compared to weekend close of 63.84 due to fresh demand for the American currency from importers and banks.
It later drifted sharply to hit day's low of 64.00, breaching the key support level on heavy dollar pressure.
The local currency, however, made a strong comeback in in later afternoon deals to touch a high of 63.71 before pulling back to settle at 63.87, showing a loss of 3 paise, or 0.05 per cent.
The rupee had strengthened by a healthy 20 paise in three-day rally after recovering from a two-week low.
The RBI meanwhile fixed the reference rate for the dollar at 63.8895 and for the euro at 78.1241.
On the global front, the greenback remained broadly lower against other major currencies, though rising Treasury yields seem to be assuring the US currency's appeal.
The dollar index, which measures the greenback's value against a basket of six major currencies, was down at 90.32 in early trade.
In cross-currency trades, the rupee retreated against the pound sterling to conclude at 88.79 per pound from 88.54 and remained weak against the Japanese yen to finish at 57.70 per 100 yens from 57.68 last Friday.
The home unit, however recovered marginally against the euro to close at 78.25 from 78.27 earlier.
Elsewhere, the Euro rebounded to trade slightly higher against the US dollar supported also by news of German Social Democrats (SPD) voting in favour of coalition talks with Angela Merkel's CDU/CSU.
The common currency booked a fifth straight week of gains in advance of Thursday's ECB meeting.
At the same time, the British pound traded in a tight range ahead of the latest UK jobs and data and the first look at Q4 GDP this week.
In forward market today, premium for dollar decline due to mild receiving from exporters.
The benchmark six-month premium payable in June eased to 122-124 paise from 123-125 paise and the far forward December 2018 contract also moved down to 259-261 paise from 261-263 paise previously.
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Kannadigas Help Line aids stranded migrants in UAE amid war crisis
Dubai: ‘Kannadigas Help Line’ has stepped up its efforts in the UAE to assist Kannadigas affected by the ongoing conflict involving the United States, Israel and Iran, by helping stranded individuals return home and providing food and shelter to those in distress.
The initiative, which was earlier formed to support Kannadigas during the Covid pandemic and floods, has resumed its activities to address the current crisis. Under the leadership of NRI entrepreneur Dr Ronald Colaco and coordination of Hidayath Addoor, the team has brought together more than 30 Kannada organisations in the UAE to extend support to affected individuals.
The team has been assisting stranded migrants, including those who are ill or without food and shelter, by visiting them and offering necessary help. Their efforts have been appreciated by the NRI community.
Speaking to the media, coordinator Hidayath Addoor said that more than 630 people who were unable to return to India were provided with flight arrangements and safely sent back home. He added that Dr Ronald Colaco had assured full financial support for arranging a chartered flight with 180 seats to evacuate elderly persons, pregnant women and those in need of urgent assistance.
He also said that Colaco extended financial help for medical treatment, including surgery for a stranded individual, and supported food arrangements for those in need. Medicines for 22 patients referred by the Indian Consulate were also provided using funds contributed by Colaco.
Arrangements were made to provide free food and accommodation for more than 235 people at hotels owned by Praveen Shetty and Isaq Haji in Dubai, and at a farmhouse owned by Dheeraj Jain in Ajman. Medical assistance was provided to 71 people through doctors at Rashid Hospital in Dubai, while 32 individuals were given medicines.
At the initial stage of the crisis, food was distributed to around 1,180 people, and 70 food kits were also provided. Transport arrangements were made to help affected individuals reach airports in Dubai, Sharjah, Ras Al Khaimah and Abu Dhabi.
Several organisations joined hands with Kannadigas Help Line in this effort, including KNRI Forum UAE, Beary’s Chamber of Commerce and Industry (BCCI) UAE, Karnataka Sangha Dubai, Kannadigara Koota Dubai, Abu Dhabi Karnataka Sangha, Dubai Non-Resident Kannadigas, Hemmeya Dubai Kannada Sangha, Okkaliga Sangha Dubai, Kannada Paathashaala Dubai, Sharjah Karnataka Sangha, Dubai Konkanis, BCF, KCF, Manki Community, SKSSF Vikhaya UAE, Noorul Huda UAE Committee, Dubai Beary’s, Badriya Friends, Hidaya Foundation, Shamsul Ulama Thodar, Ras Al Khaimah and Fujairah Karnataka Sangha, Aim India Foundation, Darunnur, Gulf Karnataka Kutumba, Gulf Gelathiyaru, Mangalore Konkanis Dubai, Al Khamar Trust Mooluru, Okkaliga Sangha UAE and Rock Karnataka Sangha UAE.
In recognition of the team’s efforts, Dr Ronald Colaco hosted an Iftar gathering at his residence and appreciated the selfless service of the members along with their families.
He said that the spirit of unity and cooperation shown during the crisis should continue beyond difficult times and serve as a model for the future. He also called for celebrating national and state festivals together in the same spirit.
Colaco expressed hope that the message of unity demonstrated by the team, which worked beyond differences of region, language, class, caste and religion, would reach the homeland and help promote harmony and inclusive development.
On the occasion, Dr Ronald Colaco, Praveen Shetty, Isaq Haji, Dheeraj Jain and Madhav Kiran were honoured with mementos for their support to the initiative.
