Rupee jumps 119 paise to 90.30 against the US dollar on India-US trade deal
Mumbai (PTI): The rupee appreciated 119 paise to 90.30 against the US dollar in early trade on Tuesday, after US tariffs on India were cut from 50 per cent to 18 per cent.
Forex traders said the 18 per cent tariff changes the story, improving India’s relative position and reopening the door for FII participation.
At the interbank foreign exchange market, the rupee opened at 90.30 against the US dollar, registering a gain of 119 paise over its previous close of 91.49.
"The good news overnight was the US-India trade deal which was announced after a delay of almost 9 months by President Donald Trump and endorsed by PM Narendra Modi in which the trade tariffs were reduced to 18 per cent, a tad lower than what it is for Bangladesh and Pakistan our neighbours giving our exporters a relative advantage," said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Bhansali further noted that FIIs may finally buy Indian equities after being sellers for such a long time.
"We need to wait and see the RBI stance today and in the coming days as it needs to buy the short dollar position," he added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.20 per cent lower at 97.43.
Brent crude, the global oil benchmark, was trading lower by 0.41 per cent at USD 66.03 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 2138.08 points or 2.62 per cent higher at 83,804.54, while the Nifty was up 607 points or 2.42 per cent at 25,695.40.
Foreign Institutional Investors offloaded equities worth Rs 1,832.46 crore on Monday, according to exchange data.
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Gujarat govt to provide new PNG connections to hotels, hostels, educational institutes
Ahmedabad (PTI): The Gujarat government has decided to provide new PNG (piped natural gas) connections to restaurants, hotels, educational and socio-religious institutions located in areas where the pipeline distribution network is available, if they apply for the facility.
The decision was taken on Friday at a high-level meeting chaired by Chief Minister Bhupendra Patel. The meeting reviewed the status of PNG and petroleum products in the state in the backdrop of the ongoing conflict in West Asia, which has severely disrupted global energy supplies.
"The CM took an important decision that in the areas of the state where pipeline network for city gas distribution is available, restaurants, hotels, educational and socio-religious institutions demanding new PNG connections will be given the same with immediate effect as per their needs," stated an official release.
The meeting was informed that a sufficient quantity of natural gas supply was currently available in the state for citizens who get gas through pipelines for domestic use, it said.
The government on Thursday insisted that adequate stocks of liquefied petroleum gas (LPG) and PNG are available in the state for domestic consumption despite the evolving geopolitical situation in West Asia, from where India imports a large share of its energy products.
Continuous monitoring is being carried out by the Centre and state authorities to ensure uninterrupted supply and distribution of LPG cylinders across Gujarat, it had said.
