Mumbai, Nov 7: The rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar on Thursday, as weak domestic equities and sustained foreign fund outflows dented market sentiment.

Forex traders said investors were also cautious ahead of the US Fed meeting outcome. Moreover, overnight gains in crude oil prices also weighed on the local unit.

However, a correction in the dollar index against major currencies helped the rupee and restrained the slide, they added.

At the interbank foreign exchange, the rupee opened at 84.26 against the US dollar. During the session, the local currency touched a high of 84.26 and a low of 84.38. It finally settled at 84.32, a loss of just 1 paisa against its previous close.

On Wednesday, the rupee depreciated 22 paise to close at an all-time low of 84.31 against the US dollar.

The rupee touched fresh record lows again on the back of weak domestic equities and sustained FII outflows. However, the softening of the US Dollar index from Wednesday's highs cushioned the downside, forex traders said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.22 per cent lower at 104.86.

Brent crude, the global oil benchmark, fell 0.32 per cent to USD 74.68 per barrel in futures trade.

"We expect the rupee to trade with a negative bias on overall strength in the US Dollar on the back of Donald Trump’s victory in the US Presidential elections and FII outflows. However, softening of commodity prices amid easing geopolitical risk premium may support the rupee at lower levels," said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

Any intervention by the RBI may also support the rupee at lower levels. Traders may take cues from weekly unemployment claims data from the US and FOMC meeting decisions. The Bank of England's monetary policy decision is also due.

"With Asian currencies down, US Dollar up, and yields up, the RBI does not have any option but to allow the rupee to fall to ensure that REER remains competitive for our exports.

"If the FOMC is a bit hawkish in its tone or does not cut rates today or says it will not cut in December, then we could see another fall in rupee to the extent of 84.50," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

BoE and FOMC are expected to cut interest rates by 25 bps. USD/INR spot price is expected to trade in a range of 84.15 to 84.60, Choudhary said.

In the domestic equity market, the 30-share BSE Sensex fell 836.34 points, or 1.04 per cent, to close at 79,541.79 points, while Nifty declined 284.70 points, or 1.16 per cent, to settle at 24,199.35 points.

Foreign institutional investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 4,888.77 crore, according to exchange data.

"Importers need to be covered for any imports to be paid in November and for December should buy any dip near 84. Exporters are likely to book on every uptick of 25 paise after watching the markets," Bhansali said.

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Jerusalem, Nov 7: Israel's parliament passed a law early Thursday that would allow it to deport family members of Palestinian attackers, including the country's own citizens, to the war-ravaged Gaza Strip or other locations.

The law, which was championed by members of Prime Minister Benjamin Netanyahu's Likud party and his far-right allies, passed with a 61-41 vote. But legal experts said that any attempt to implement it would likely lead to it being struck down by Israeli courts.

It would apply to Palestinian citizens of Israel and residents of annexed east Jerusalem who knew about their family members' attacks beforehand or who “express support or identification with the act of terrorism.”

They would be deported, either to the Gaza Strip or another location, for a period of seven to 20 years. The Israel-Hamas war is still raging in Gaza, where tens of thousands have been killed and most of the population has been internally displaced, often multiple times.

It was unclear if it would apply in the occupied West Bank, where Israel already has a long-standing policy of demolishing the family homes of attackers. Palestinians have carried out scores of stabbing, shooting and car-ramming attacks against Israelis in recent years.

Oded Feller, a legal adviser to the Association for Civil Rights in Israel, dismissed the law as “populist nonsense.” He said it was unlikely to be applied, because there is no legal way for the Interior Ministry to send an Israeli citizen to another country or to Gaza.

His organisation doesn't plan to challenge the law unless authorities try to enforce it, in which case he expects any court challenge to succeed.

Eran Shamir-Borer, a senior researcher at the Israel Democracy Institute and a former international law expert for the Israeli military, agreed that the law was likely to be struck down by the Supreme Court.

He said that if a resident of east Jerusalem was deported under the law, it could be seen by many in the international community as a violation of the Fourth Geneva Convention, because they view the area as occupied territory, although Israel doesn't.

The deportation of an Israeli citizen could be seen not only as a violation of their constitutional rights under Israeli law, but also as a breach of their human rights under international law, he said. The law could also be seen as a form of collective punishment and as discriminatory, because it appears to only apply to Arab citizens and residents, and not to family members of Jews convicted under terrorism laws.

“The bottom line is this is completely nonconstitutional and a clear conflict to Israel's core values,” Shamir-Borer said.

Israel captured Gaza, the West Bank and east Jerusalem in the 1967 Middle East war — territories the Palestinians want for their future state. It withdrew settlers and soldiers from Gaza in 2005, but has reoccupied parts of the territory since Hamas' attack on October 7, 2023 triggered the war.

Israel annexed east Jerusalem in a move not recognised by most of the international community. Palestinians there have permanent residency and are allowed to apply for citizenship, but most choose not to, and those who do face a series of obstacles.

Palestinians living in Israel make up around 20 per cent of the country's population. They have citizenship and the right to vote but face widespread discrimination. Many also have close family ties to those in the territories and most sympathise with the Palestinian cause.