Rupee falls 12 paise to all-time closing low of 85.64 against US dollar
Mumbai, Dec 31: The rupee depreciated 12 paise to close at a fresh record low of 85.64 against the US dollar on Tuesday, ending the year with a sharp 3 per cent loss on significant foreign fund outflows and a strong greenback in global markets.
Forex traders said the rupee has been under continued pressure amid the Federal Reserve's cautious stance on rate cuts and the "Trump factor" driving up the dollar index (DXY) and US 10-year bond yields.
Additionally, slowing domestic macroeconomic growth, widening trade deficit and persistent foreign fund outflows have further fuelled the rupee's depreciation.
At the interbank foreign exchange, the rupee opened at 85.54 and touched the lowest level of 85.66 against the greenback during intra-day trade.
The unit ended the session at 85.64 against the dollar, registering a fall of 12 paise over its previous close.
On Monday, the rupee dropped 4 paise to 85.52 against the US dollar.
The domestic unit has depreciated against the greenback by almost 3 per cent from 83.16 on December 29, 2023, to 85.65 on December 31, 2024.
The local currency breached the crucial 84-level on October 10, surpassed the 85-a-dollar mark on December 19 and even touched the lifetime low of 85.80 intraday on December 27, recording the steepest single-day fall in nearly two years.
According to Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, the rupee is expected to trade with a negative bias on elevated crude oil prices, overall strength in the US dollar and month-end dollar demand from importers.
Moreover, persistent selling pressure by foreign funds added further strain on the currency. Foreign Institutional Investors (FIIs) offloaded Rs 4,645.22 crore in the capital markets on a net basis on Tuesday, according to exchange data.
In 2024, foreign investors significantly scaled back their investments in Indian equities, with net inflows amounting to a little over Rs 5,000 crore, as elevated domestic valuations, coupled with geopolitical uncertainties prompted investors to adopt a more cautious stance.
In 2023, Rs 1.71 lakh crore net investment was made in the domestic equity market.
"However, any intervention by the RBI may support the rupee at lower levels. Volumes may remain thin due to the New Year holiday. USD/INR spot price is expected to trade in a range of 85.40 to 85.85," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan - said.
India's external debt rose to USD 711.8 billion as of September this year, up 4.3 per cent over June 2024, as per the data released by the Finance Ministry. At the end of September 2023, the external debt stood at USD 637.1 billion.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.11 per cent at 108.01.
Brent crude, the global oil benchmark, surged 0.57 per cent to USD 74.41 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex closed 109.12 points, or 0.14 per cent lower, at 78,139.01 points. The Nifty settled on a flat note at 23,644.80 points.
On the domestic macroeconomic front, India's current account deficit (CAD) moderated marginally to USD 11.2 billion or 1.2 per cent of GDP year-on-year in the July-September quarter of 2024-25, according to Reserve Bank data.
The CAD, an indicator of the country's external payment scenario, was USD 11.3 billion or 1.3 per cent of GDP during the second quarter of 2023-24.
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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.
