Rupee rises 38 paise to 90.40 against US dollar in early trade
Mumbai (PTI): The rupee appreciated 38 paise to 90.40 against the US dollar in early trade on Thursday, supported by foreign fund inflows and suspected RBI intervention.
Forex traders said foreign fund inflows, while not massive, provided a psychological anchor. Moreover, the RBI has been quietly ensuring that liquidity remains abundant in the banking system.
At the interbank foreign exchange market, the rupee opened at 90.55 against the US dollar, then gained momentum and touched 90.40, registering a rise of 38 paise over its previous close.
In the initial trade, the rupee also touched 90.56 against the American currency.
ALSO READ: Fresh plea by 4 Assamese in Supreme Court seeks action against Assam CM over alleged hate speeches
On Wednesday, the rupee depreciated 22 paise to close at 90.78 against the US dollar on Wednesday.
"The RBI has been quietly ensuring that liquidity remains abundant in the banking system. With surplus liquidity hovering near Rs 3 trillion — the highest in six months — banks are flush with cash," CR Forex Advisors MD Amit Pabari said in a note.
Pabari further noted that elevated crude oil prices continued to hover like a silent tax on the economy. Geopolitical tensions remained unresolved, keeping risk appetite restrained.
"Meanwhile, steady dollar demand persisted in the background. Add to that the lingering uncertainty around the US-India trade framework -- including the earlier revisions to the White House fact sheet -- and the mood naturally turned cautious," he said.
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.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent lower at 96.78.
Brent crude, the global oil benchmark, was trading 0.42 per cent higher at USD 69.69 per barrel in futures trade.
On the domestic equity market front, Sensex declined 349.87 points to 83,883.77 in early trade, while the Nifty was down 106.60 points to 25,847.25.
On Wednesday, foreign institutional Investors purchased equities worth Rs 943.81 crore, according to exchange data.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
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.
