Rupee falls 6 paise to 90.62 against US dollar in early trade
Mumbai (PTI): The rupee depreciated 6 paise to 90.62 against the US dollar in early trade on Wednesday as geopolitical tensions and dollar demand from importers weighed on investor sentiments.
At the interbank foreign exchange market, the rupee opened at 90.56 against the US dollar, then lost some ground to touch 90.62, registering a loss of 6 paise over its previous close.
In the initial trade, the rupee also touched 90.46 against the American currency.
On Tuesday, the rupee pared initial losses and settled on a positive note, higher by 10 paise at 90.56 against the US dollar.
Forex traders said that while markets initially welcomed the India-US trade deal, fresh concerns have emerged after the White House released its fact sheet.
The fact sheet highlights key terms of the agreement, including that India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products.
This includes dried distillers’ grains, red sorghum, tree nuts, and fresh and processed fruit. Certain pulses, soybean oil, wine and spirits, and additional products, and India has committed to buy more American products and purchase over USD 500 billion of US energy, information and communication technology, agricultural, coal, and other products.
"The US document goes a step further than the February 6 joint statement by explicitly mentioning tariff reductions on additional American agricultural products, including certain pulses. This is a sensitive area for India — both politically and economically," CR Forex Advisors MD Amit Pabari said in a note.
Pabari said, "In the near term, the 90.00–90.20 zone continues to act as a strong support for the rupee. As long as this area remains intact, USD/INR could slowly move higher, with the 91.00–91.20 range emerging as the next potential upside zone in the coming sessions."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.14 per cent lower at 96.66.
Brent crude, the global oil benchmark, was trading 0.78 per cent higher at USD 69.34 per barrel in futures trade.
For India, as a major oil-importing country, higher crude prices mean a heavier import bill. And a heavier import bill almost always translates into pressure on the rupee, even if the impact is gradual, Pabari said.
On the domestic equity market front, Sensex rose 141.21 points to 84,415.13 in early trade, while Nifty advanced 51.95 points to 25,987.10.
On Tuesday, foreign institutional Investors purchased equities worth Rs 69.45 crore, according to exchange data.
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Modi should leverage his ties with world leaders to de-escalate war in West Asia: Omar Abdullah
Jammu (PTI): Jammu and Kashmir Chief Minister Omar Abdullah on Monday said India can play a meaningful role in de-escalation in West Asia, given Prime Minister Narendra Modi's strong relations with the warring countries and their neighbours.
He said Pakistan was leveraging ties with Iran and the United States, and that any effort towards ending the war should be welcomed.
"As I said in the House (Assembly), we would like the war to end as soon as possible. The role that the prime minister can play may not be possible for anyone else because of his good relations with all these countries," Abdullah told reporters on the sidelines of a function here.
He, however, said any escalation would not be easy to manage.
"Any such move by US President Donald Trump, despite the long history of Iran resisting external domination, would not be easy," the chief minister said.
Asked about Pakistan mediating in the war, he said, "I will simply say that if any country can play a role in preventing this war, no one should have any objection to it."
He added, "I will repeat what I said … our prime minister has good and close relations with all countries — whether it is Israel, the United States, Iran, or the countries around Iran. If those relationships can be used to make some progress and help ease the situation, it would be a good thing."
Abdullah said attacks by terror groups like Lashkar-e-Taiba and Jaish-e-Mohammed in India, as suggested by a report from the United States, are not unlikely.
Meanwhile, he asserted that any efforts to end the war, be it from Pakistan, must not be resisted.
"Pakistan is using its good relations with Iran and the United States to its advantage, and it has done so. How can we object to that? If that angle helps in stopping the war, would you want them not to act and let the war continue? We want the war to stop. If any country can play a role in that, it should. And if we can play an even better role, then we should do so," he said.
On unemployment in J-K, the chief minister said the issue cannot be resolved overnight, and government jobs alone are not the solution.
He stressed the need to explore alternative avenues, highlighting the importance of Mission Yuva in promoting entrepreneurship.
"Mission Yuva provides not just funding but also support in preparing DPRs and post-startup assistance, such as marketing. In just nine months, distributing Rs 1,000 crore and approving numerous schemes is a significant achievement," he said.
Abdullah credited the coordination between the government and Jammu and Kashmir Bank for the scheme's progress.
