Rupee falls 4 paise against USD amid strengthening US bond yields
Mumbai, (PTI): The rupee dropped 4 paise to 83.16 against the US dollar on Monday due to sharp losses in local stocks and US bond yields surging to 5 per cent.
Easing crude oil prices and a flat greenback in the overseas markets helped cap the rupee's fall, forex dealers said.
At the interbank foreign exchange market, the local unit opened lower at 83.15 and traded in a tight range of 83.19 and 83.09 against the greenback during the day.
The local unit finally settled at 83.16, reflecting losses of 4 paise over the last close. On Friday, the rupee closed flat at 83.12 against the US dollar.
Forex markets will remain closed on Tuesday on account of Dussehra.
Analysts said hardening US bond yields amid a higher risk of broader conflict in the Middle East weighed on emerging currencies and riskier assets. The 10-year US Treasury was at 5 per cent on Friday.
"The rupee experienced weakness during the trading session. Concerns regarding potential escalations in geopolitical issues in the Middle East have contributed to this negative sentiment.
"Furthermore, the continued selling by Foreign Institutional Investors (FII) in the capital markets has put downward pressure on the rupee. It is important to note that while RBI interventions have been instrumental in stabilising prices and preventing the rupee from falling below 83.25, global uncertainties and geopolitical tensions can still have an adverse impact on the rupee's value," Jateen Trivedi, VP Research Analyst at LKP Securities said.
Increased apprehensions surrounding prolonged elevated interest rates fuelled a continued upward movement in the US 10-year yield, Vinod Nair, Head of Research at Geojit Financial Services said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, retreated from overnight highs and was almost flat at 106.21.
Crude oil prices eased on Monday, with the benchmark Brent crude declining by 0.23 per cent to USD 91.95 per barrel.
On the domestic equity market front, Sensex tanked 825.74 points or 1.26 per cent to settle at 64,571.88. The Nifty plunged 260.90 points or 1.34 per cent to 19,281.75.
Foreign Institutional Investors bought equities worth Rs 252.25 crore on Monday, according to exchange data.
Foreign Portfolio Investors have withdrawn over Rs 12,000 crore from Indian equities so far this month, mainly due to a sustained rise in US bond yields and the uncertain environment resulting from the Israel-Hamas conflict.
"Given the prevailing dynamics, the rupee's trading range is anticipated to remain within 82.85-83.30. However, the rupee's performance remains sensitive to global events and market sentiment," Trivedi said.
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India's neighbours wanted to break up Assam but Modi govt shattered their dreams: Fadnavis
Dibrugarh/Jorhat (PTI): Maharashtra Chief Minister Devendra Fadnavis on Tuesday claimed India's neighbours wanted to "break up" Assam by taking advantage of the unrest here earlier, but their "dreams were shattered" as the Narendra Modi government brought peace to the region.
Militancy has come to an end, and 92 per cent of the assurances made in the peace agreements with various groups have already been implemented, he told a poll rally.
Fadnavis maintained that the BJP-led government in Assam has not only ensured the state's development but also protected its identity.
He accused the Congress of having neglected the state and the northeastern region by adopting a "step-motherly attitude" towards them, while Modi has put the region at the centre of development.
Addressing a rally in support of BJP's Dibrugarh candidate Prasanta Phukan, Fadnavis said, "Due to the unrest in the state earlier, neighbouring countries thought they would break Assam someday. But their dreams were shattered by Modi ji, and Assam is progressing fast today."
Crediting the BJP government for bringing the militant groups to the mainstream, the Maharashtra chief minister said not only were peace accords signed with them, but 92 per cent of the assurances made have been implemented.
"Work is on for implementing the remaining eight per cent of promises also," he added.
Highlighting the various welfare measures of the state government, Fadnavis said special emphasis was being given on women's empowerment in line with the Centre's thrust on it.
"Women have benefited the most under Modiji's government. It will be 'Mahila raaj' from 2029 when 33 per cent reservation is implemented in Parliament and state Assemblies," he added.
Speaking at another rally in support of the BJP's Jorhat candidate Hitendra Nath Goswami earlier, the Maharashtra chief minister alleged that infiltration was at its peak in Assam under Congress governments.
"People had to launch a movement against it, and scores were martyred. But the influx did not stop, and the state was burning. It was staring at a full demographic change."
"But the situation changed when Modi came to power. Infiltration has been stopped, and almost all militant groups in the state are returning to the mainstream," he claimed.
Fadnavis claimed that the state's demography would have changed and Assam's history would have been rewritten under the Congress rule.
"But the Modi government works not just for development, but also protects the state's identity, culture, history, and tradition," he said.
He told the gathering that the BJP-led government has ensured massive infrastructure development for the state.
Mentioning the Tata Group's semiconductor unit at Jagiroad, Fadnavis said, "It is a gift of Modi ji to Assam. It will place the state on the global map."
He added that countries with the ability to manufacture semiconductors will be global leaders in the future, and India has joined the elite ranks of a handful of nations.
Taking a dig at the Congress, Fadnavis alleged it had always adopted a "step-motherly attitude" towards the northeast, due to which the region did not see much development, and was embroiled in unrest.
He also criticised the opposition party for its "anti-national stance" during the West Asia crisis, claiming it was trying to create discontentment among the people by raising false doubts over the availability of LPG and fuel.
"We had also been in the opposition, but we had never acted in such a shameful manner," he said.
Taking a dig at state Congress president Gaurav Gogoi, who is also the opposition party's candidate in Jorhat, Fadnavis said, "Those in Lok Sabha should remain there. BJP will return to power, and he will have no work here."
Gogoi is also the opposition party's deputy leader in the Lok Sabha.
