Rupee settles at record low of 78.32 against dollar on forex outflows
Mumbai, Jun 23: The rupee on Thursday closed at its all-time low of 78.32 against the US dollar as strong American currency and persistent foreign fund outflows weighed on investor sentiments.
At the interbank foreign exchange market, the local currency opened higher at 78.26 and rose to the day's high of 78.22 due to weakness in the US dollar and crude oil in early trade.
However, a rebound in the greenback and Brent crude later hit the rupee sentiment, pushing the local currency to the day's low of 78.38. The rupee finally settled unchanged at 78.32, its record low level against the US dollar.
The dollar had weakened in the early session in Asia after the US Federal Reserve chairman said a recession is possible as the US central bank raises interest rates to cool surging inflation.
The rupee erased early morning gains as safe-haven demand drove the greenback ahead of quarter-end adjustments, said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar further said that there is a high chance of a near bounce amid a fall in commodities, strength in regional currencies and recovery in risk assets.
"Spot USDINR is expected to be in the narrow range of 78.10 to 78.50 before heading towards 79 odd levels," Parmar said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.41 per cent to 104.62.
Brent crude futures, the global oil benchmark, edged higher 0.3 per cent to USD 112 per barrel after initial losses as investors weighed recession fears.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the local unit continued to remain under pressure amid rising concerns of a recession. Asian and emerging market peers were weak except for the Chinese Yuan and Malaysian Ringgit.
"India's bond yields ended higher as traders booked profits. The benchmark 6.54 per cent bond ended at 7.42 per cent, against yesterday's close of 7.40 per cent," Iyer said.
The US Dollar Index was trading higher in Asian trade, while the euro and the Sterling remained under pressure against the greenback as disappointing German and French PMI data confirmed the euro zone economy is struggling to gain traction.
The Yen continued to gain amid safe haven appeal for the currency, Iyer said.
The rupee traded in a range of 78.20-78.40 and ended near 78.30 as the dollar traded neutral along with range-bound capital market, Jateen Trivedi, VP Research Analyst at LKP Securities.
"Rupee weakness can continue till the time crude stays above USD 95 per barrel, any breach below USD 95 per barrel and lower level sustained on crude shall provide strong support to the rupee," Trivedi said.
Meanwhile, as per minutes of the latest Monetary Policy Committee (MPC) meeting released on Wednesday, all the six members of the MPC, including the RBI Governor, expressed concern over continued high inflation and stressed that the central bank's endeavour would be to bring down the rate of price rise within the target range.
India witnessed a current account deficit of 1.2 per cent of GDP in 2021-22, against a surplus of 0.9 per cent in FY2020-21, due to a wider trade deficit, the Reserve Bank said on Wednesday.
In absolute terms, the deficit for FY22 came at USD 38.7 billion as against a surplus of USD 24 billion in the year-ago period, data released by the RBI showed.
On the domestic equity market front, the BSE Sensex ended 443.19 points or 0.86 per cent higher at 52,265.72, while the broader NSE Nifty gained 143.35 points or 0.93 per cent to 15,556.65.
Foreign institutional investors remained net sellers in the capital market on Thursday as they offloaded shares worth Rs 2,319.06 crore, as per stock 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.
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.
