Rupee hits fresh all-time low, settles 5 paise lower at 84.88 against dollar
Mumbai, Dec 12: The rupee depreciated by 5 paise to settle at an all-time low of 84.88 against the US dollar on Thursday, dragged down by negative domestic equity markets, outflow of foreign funds and rise in crude oil prices.
Forex traders said the rupee remains in a weakening mode due to dollar demand from importers and foreign banks.
At the interbank foreign exchange, the rupee opened at 84.85 and touched the lowest-ever level of 84.89 against the greenback during intra-day trade. The unit finally ended the session 5 paise down at a fresh all-time low closing level of 84.88 against the dollar.
On Wednesday, the rupee settled with a gain of 2 paise at 84.83 against the US dollar.
Rupee's previous record low closing level was recorded on December 9, when it settled 20 paise lower at 84.86 against the dollar.
On the domestic macroeconomic front, retail inflation declined in November to 5.48 per cent and came within the Reserve Bank's comfort zone mainly due to easing food prices, creating headroom for a rate cut at the central bank's rate-setting panel meeting under new Governor Sanjay Malhotra in February.
India's industrial production (IIP) growth slowed to 3.5 per cent year-on-year in October 2024, mainly due to poor performance of mining, power and manufacturing, as per official data released on Thursday.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee touched a fresh all-time low on strong US dollar and weak domestic markets.
He further said the US dollar gained on rising inflation in the US. However, it was in line with estimates.
"Surge in global crude oil prices may further pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from PPI (producer price index) and weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of 84.65 to 85.10," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.09 per cent at 106.81.
Brent crude, the global oil benchmark, fell 0.63 per cent to USD 73.06 per barrel in futures trade.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee continued to hover in a weak range as the US inflation data came in line with expectations, signaling potential continuity in the Federal Reserve's rate-cut trajectory.
"... The dollar held its ground near the key 106 level, keeping pressure on the rupee. Additionally, FII selling resumed after a brief phase of buying, further contributing to rupee weakness," he added.
On the domestic equity market front, the 30-share benchmark index Sensex closed lower by 236.18 points or 0.29 per cent at 81,289.96 points. The Nifty was down 93.10 points, or 0.38 per cent, to 24,548.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 3,560.01 crore, according to exchange data.
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Rajnath to top commanders: Outmaneuver adversaries with strategic surprise
Jaipur/New Delhi (PTI): Defence Minister Rajnath Singh on Friday directed the top military commanders of the three services to integrate an "element of surprise" into modern warfare to outmaneuver India's adversaries and bolster strategic posture.
In his address at the joint commanders conference in Jaipur, Singh also described the Operation Sindoor as a testament to the "swift, precise, and joint response" of the Indian armed forces to safeguard national interests and called upon the military to remain ready to deal with any security challenges.
In their two-day deliberations, the commanders carried out a comprehensive review of the combat preparedness of the military in the wake of the evolving regional security situation.
Operation Sindoor was a demonstration of India's growing capabilities and a symbol of the nation's collective resolve and new military ethos, Singh said, a day after the first anniversary of Operation Sindoor.
He also unveiled a 'Joint Doctrine for Integrated Communication Architecture' that is aimed at strengthening doctrinal clarity, interoperability and integrated communications across the armed forces in future multidomain operations.
The joint commanders' conference, themed 'Military Capability in New Domains', brought together the top leadership of the defence ministry and the three services to deliberate on emerging security challenges and future readiness.
Comprehensive deliberations were held on future warfare, multidomain operations, technological transformation and joint capability development.
The conference witnessed extensive discussions on cognitive warfare, cyber resilience against evolving quantum and AI-enabled threats, military capability development in emerging domains, indigenous innovation and AI-enabled warfighting concepts.
It was attended by Chief of Defence Staff Gen Anil Chauhan, Chief of the Naval Staff Admiral Dinesh Kumar Tripathi, Chief of the Army Staff Gen Upendra Dwivedi, Chief of the Air Staff Air Chief Marshal AP Singh and Defence Secretary Rajesh Kumar Singh among others.
In his remarks, Singh asked the commanders to remain "future-ready" by learning from the operation as well as the current global security landscape.
He underscored the need to strengthen capabilities in artificial intelligence, autonomous systems, data analytics and secure communication networks to stay prepared in the rapidly evolving geopolitical security scenario. He emphasised that future conflicts will increasingly be shaped by hybrid threats, information dominance and operations conducted simultaneously across cyber, space, electromagnetic and cognitive domains, according to an official readout.
Highlighting the transformative impact of emerging technologies, Singh stressed on the importance of ensuring integrated national preparedness across all spectrums of conflict, it said.
Singh's remarks at the conference came a day after the first anniversary of Operation Sindoor.
The defence minister appreciated the progress achieved in enhancing jointness, integration and technological adoption across the three services, the readout noted.
Singh said that jointness constitutes a pivotal dimension within the transformative changes sweeping across the global defence sector.
"Future wars will not be won solely through weaponry, but through innovative thinking and enhanced synergy," he said.
The defence minister exhorted the commanders to cultivate the "element of surprise" to remain unpredictable to the nation's adversaries and secure a strategic edge in any given situation.
He, however, urged them to remain vigilant of the element of surprise of the enemy and always stay two steps ahead.
Singh also reiterated the Narendra Modi government's commitment to enhancing the capabilities of the defence forces through state-of-the-art weapons and platforms. He added that special focus is being laid on research in niche domains.
During the conference, he released a documentary film on Operation Sindoor.
The film reaffirms the nation's and defence forces' commitment to operational preparedness and decisive national response capabilities.
Demonstrations of advanced systems and platforms developed for intelligence fusion, operational planning and information management were also showcased during the conference reflecting growing integration of cutting-edge technologies into joint operational structures, according to the defence ministry.
The discussions will contribute significantly towards shaping India's future military transformation and integrated operational preparedness, it said.
