Rupee falls 1 paisa to hit new all-time low of 84.38 against US dollar
Mumbai, Nov 11: Declining for the fourth straight session, the rupee dropped 1 paisa to hit a new lifetime low of 84.38 against the US dollar on Monday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.
Forex traders said the rupee is likely to remain under pressure unless there is a softening in the dollar index or a slowdown in foreign fund outflows.
At the interbank foreign exchange, the rupee opened at 84.38 against the US dollar. During the session, the local currency touched a high of 84.37 and a low of 84.39. It finally settled at 84.38, registering a loss of 1 paisa against its previous close.
On Friday, the rupee dropped 5 paise to hit the lowest level of 84.37 against the US dollar, registering a decline for the third straight session.
In the last four sessions, the local unit has lost 29 paise against the greenback.
The USD-INR pair fell to a record low on Monday as the US dollar index strengthened on Donald Trump's growth agenda optimism. Foreign investors, following an outflow of USD 11 billion in October, have withdrawn around USD 1.50 billion from the Indian equities in November.
The Reserve Bank's intervention may support the domestic currency. Moreover, traders look forward to the India and the US CPI inflation data scheduled to be released this week, Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, adding the domestic currency is expected to trade with a bearish tilt in near future.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.29 per cent higher at 105.30.
Brent crude, the global oil benchmark, fell 1.04 per cent to USD 73.10 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex rose 9.83 points, or 0.01 per cent, to close at 79,496.15 points, while Nifty fell 6.90 points, or 0.03 per cent, to settle at 24,141.30 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 2,306.88 crore, according to exchange data.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, the rupee maintained its position at record-low levels as the dollar index remained neutral and FIIs showed limited selling activity at the start of the new week.
"This week's focus will be on the US CPI data release, which could influence the dollar's trajectory. Additionally, US Fed Chairperson Jerome Powell's upcoming speech is expected to provide insights that may drive price action in the dollar, currently trading at a four-month high of 105.21," he added.
Meanwhile, India's forex reserves declined by USD 2.675 billion to USD 682.13 billion for the week ended November 1, the RBI said on Friday.
In the previous week, the overall reserves had dropped by USD 3.463 billion to USD 684.805 billion. At September-end, the reserves had hit an all-time high of USD 704.885 billion.
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Karnataka: SP’s gunman among two arrested for extorting money from rice smuggler
Ballari (Karnataka) (PTI): An armed police constable serving as the district superintendent of police’s personal gunman, along with his accomplice, was arrested for allegedly extorting money from a rice smuggler, police said on Friday.
Devaraj, who had been serving as the SP’s gunman for the past four and a half years, was identified as the mastermind behind the incident.
Following an investigation, Devaraj and his accomplice Sairam were arrested on May 6, while efforts are underway to nab a third accused, Gadilinga, a practising advocate in Ballari, who is absconding, police said.
The matter came to light after a complaint was filed by Sharabappa, a habitual offender allegedly involved in illegal rice transport, they added.
According to police, the incident occurred on the intervening night of April 27 and 28, when a group of masked men intercepted Sharabappa’s rice-laden vehicles near the Moka forest area.
The accused allegedly introduced themselves as members of an “SP squad”, threatened to seize the vehicles and file criminal cases, and demanded money to avoid legal action.
Police said the accused initially demanded Rs 5 lakh and later extorted around Rs 3 lakh from the complainant.
Investigation revealed that Devaraj was the main person involved in demanding and collecting the money, while Sairam and Gadilinga were also involved in the offence. Sairam was allegedly involved in similar activities earlier as well.
Devaraj and Sairam were arrested under Sections 308(2) (extortion) and 3(5) (common intention) of the Bharatiya Nyaya Sanhita.
Police also seized the extorted cash, the four-wheeler, and mobile phones allegedly used in the crime. Efforts are underway to trace Gadilinga.
Addressing a press conference, Ballari Superintendent of Police Suman D Pennekar described the incident as a serious offence that has tarnished the image of the police department.
"There is no official ‘SP squad’ or ‘DSP squad’ operating in the district. Such labels are often misused by impostors or corrupt individuals to commit extortion," the SP clarified.
She said no involvement of other police officers has been found so far.
Departmental proceedings have been initiated against Devaraj, and suspension proceedings are underway. The SP added that strict action will be taken against anyone involved in such offences.
Police said Sharabappa, the complainant, is a known habitual offender involved in illegal rice smuggling, and several cases have already been registered against him in the Moka and Peddihalli areas. A separate case has also been registered against him in connection with rice smuggling on the night of the incident.
Authorities are also exploring the possibility of initiating externment proceedings against him under applicable legal provisions.
The SP urged the public to report any extortion attempts by persons claiming to be part of an “SP squad”, assuring that the identity of informants will be kept confidential.
