Rupee falls 11 paise to close at record low of 85.75 against US dollar
Mumbai, Jan 2: The rupee depreciated 11 paise to close at a record low of 85.75 against the US dollar on Thursday, as strong dollar demand from importers and foreign fund outflows dented investor sentiments.
Forex traders said the dollar gained against most currencies during 2024 and continued to remain on a strong footing this year. Moreover, persistent foreign fund outflows further dented investors' sentiments.
Additionally, global markets are expected to see low volumes as the holiday season is underway in major economies like those in Europe.
At the interbank foreign exchange, the rupee opened on a weak note and sank to an intra-day low of 85.79 while registering a high of 85.68 against the American currency. The local unit settled for the day at a record low of 85.75, registering a fall of 11 paise over its previous close amid a sharp recovery in domestic equities.
On Wednesday, the rupee settled flat at 85.64 against the US dollar.
On December 27, the local currency touched its lifetime intra-day low of 85.80 against the greenback.
"We expect the rupee to trade with a negative bias on strength in the US Dollar and dollar demand from importers. Sustained FII outflows may further pressure the rupee," said Anuj Choudhary -- Research Analyst at Mirae Asset Sharekhan.
"However, any intervention by the Reserve Bank of India (RBI) may support the rupee at lower levels. USDINR spot price is expected to trade in a range of 85.50 to 86, Choudhary added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.02 per cent lower at 108.46.
Brent crude, the global oil benchmark, rose 0.91 per cent to USD 75.32 per barrel in futures trade.
Meanwhile, India's manufacturing sector growth fell to a 12-month low in December, as new business orders and production expanded at softer rates, a monthly survey said on Thursday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index was at 56.4 in December, down from 56.5 in November, indicating a weaker improvement in operating conditions.
In the domestic equity market, the 30-share BSE Sensex settled at 1,436.30 points, or 1.83 per cent, up at 79,943.71 points, while the Nifty was higher by 445.75 points, or 1.88 per cent, to 24,188.65 points.
Foreign Institutional Investors (FIIs) purchased Rs 1,506.75 crore in the capital markets on a net basis on Thursday, according to exchange data.
"The Indian rupee is expected to open flat but USD will continue to be well bid on all its downside as demand for USD continued to be robust... The range for the day is expected between 85.50/80. A close watch on the liquidity position is to be made as premiums in the near term remain on the higher side," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
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Bihar: Over 150 children fall ill after consuming 'mid-day meal' in Saharsa
Saharsa (PTI): More than 150 children were taken ill after allegedly consuming food that was part of the mid-day meal in a school in Bihar’s Saharsa district, a senior official said on Thursday.
The incident occurred at a middle school in Baluaha village of the district.
The official said that 115 children were undergoing treatment at the Sadar Hospital, while around 50 students were admitted to Mahishi Public Health Centre.
“We received information that several children fell ill after consuming the mid-day meal in Baluaha. The children were initially treated at the primary health centre, but later, many were referred to the Sadar Hospital,” Saharsa District Magistrate Deepesh Kumar told reporters.
“According to doctors, the health condition of the children has improved, but they will be kept under observation for some time. There is no need to panic. Some kids are having mild fever. They are being treated accordingly,” Kumar said.
Meanwhile, family members of some children claimed that a snake was found in the container in which cooked pulses was stored at the school.
Of the 545 students present in the school, 200 had already eaten their meals by the time the snake was spotted, and later complained of stomach ache and vomiting, they said.
Regarding the claims, the DM said food samples have been collected from the school.
“We will be able to comment on this only after the results of the tested samples arrive,” he said.
