Rupee falls 1 paisa to fresh all-time low of 84.32 against US dollar
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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Sambhal violence orchestrated by BJP, govt to divert attention from poll rigging: Akhilesh Yadav
Lucknow (PTI): Samajwadi Party chief Akhilesh Yadav on Sunday alleged the violence in Uttar Pradesh's Sambhal district over the survey of a mosque was "orchestrated" by the BJP, the government and the administration "to divert attention from electoral malpractice".
Police used tear gas and "minor force" in the face of stone pelting by locals in Sambhal on Sunday as tension escalated during a second survey of the Mughal-era mosque, claimed to be originally the site of an ancient Hindu temple.
Ten people have been detained and a probe was launched into the violence, an official said.
Tension has been brewing in Sambhal over the past few days after the Jama Masjid was surveyed last Tuesday on the orders of a local court following a petition that claimed that a Harihar temple stood at the site.
A day after the Uttar Pradesh bypoll results were declared and the Samajwadi Party managed to win just two seats while the BJP and its ally RLD bagged the other seven, Yadav levelled serious allegations against the police and administration.
"A serious incident occurred in Sambhal. A survey team was deliberately sent in the morning to disrupt discussions about the elections. The intention was to create chaos so that no debate on election issues could happen," the Samajwadi Party chief claimed.
Citing reports, he said several people were injured in the violence in Sambhal and asked when a survey of the mosque was already done, why was a new survey conducted again and "that too in the morning and without preparation?"
"I don't want to go into the legal or procedural aspects, but the other side was not even heard. This was intentionally done to provoke emotions and avoid discussions on election rigging," Yadav said.
"What happened in Sambhal was orchestrated by the BJP, the government and the administration to divert attention from electoral malpractices," the former UP chief minister alleged.
Asserting that in democracy, true victory comes from the people, not the system, he said, "The new democracy created by the BJP ensures that people cannot vote while the system dominates."
He added that whenever an impartial investigation takes place, and the truth comes out through booth recordings and CCTV footage, it will be evident that "voters did not cast their votes and someone else became the voter inside the booth".
Yadav claimed that on the polling day, the police and the administration removed the Samajwadi Party's almost all booth agents and many supporters who wanted to vote.
"If voters were prevented from voting, then who cast the votes? If Samajwadi Party votes didn't reach those booths and our candidate didn't get support, then who voted there? This is a serious issue," he said.
"Additionally, there were two types of slips, -- one with a red mark and another regular slip. We raised this issue on the voting day itself, stating that the administration had created such arrangements, leading to discrimination," Yadav alleged.
The Samajwadi Party's candidate for the Kundarki assembly bypoll Haji Rizwan too has alleged that his supporters were prevented from voting.
The BJP's Ramveer Singh won the bypoll in the Kundarki seat by a margin of over 1.45 lakh votes.
