Rupee plunges 17 paise to settle at new record low of 85.91 against US dollar
Mumbai, Jan 8: The rupee extended its slide for the second straight session and declined 17 paise to hit a fresh record low of 85.91 against the US dollar on Wednesday amid higher crude oil prices and stronger American currency.
Lacklustre sentiment in domestic equity markets and sustained outflow of foreign funds also played spoilsport even as investors stayed cautious over lower economic growth projection by the government, forex analysts said.
At the interbank foreign exchange, the rupee opened at 85.82 and lost further ground to finally settle at 85.91 against the dollar, 17 paise lower than its previous close.
On Tuesday, the rupee settled with a loss of 6 paise at 85.74 against the dollar.
"This decline is attributed to the strengthening of the US dollar, bolstered by positive economic indicators from the United States, including robust labour market data and increased activity in the services sector. These factors have led to a rise in US Treasury yields, making the dollar more attractive to investors," Anil Kumar Bhansali,
Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
"In response, the Reserve Bank of India (RBI) has intervened through state-run banks to mitigate the rupee's losses. Despite these efforts, the rupee's depreciation reflects broader concerns about India's economic growth and capital flows," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.35 per cent higher at 108.76.
The 10-year US bond yields also remained elevated at 4.67 per cent amid expectations of delayed interest rate cuts by the Federal Reserve.
Brent crude, the global oil benchmark, climbed 0.90 per cent to USD 77.74 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex skid 50.62 points, or 0.06 per cent, to settle at 78,148.49 points, while the Nifty fell 18.95 points, or 0.08 per cent, to 23,688.95 points.
Foreign institutional investors (FIIs) offloaded Rs 3,362.18 crore in the capital markets on a net basis on Wednesday, according to exchange data.
The latest government data released on Tuesday showed India's economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25 due to poor show by the manufacturing and services sectors.
The gross domestic product (GDP) growth at 6.4 per cent will be the lowest since the Covid year (2020-21) when the country witnessed a negative growth of 5.8 per cent. It was 8.2 per cent in the last fiscal year ended March 2024.
The first advance estimates of the national income for 2024-25 released by the National Statistics Office (NSO) is lower than the 6.6 per cent projected by the Reserve Bank in December 2024.
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Truck-rickshaw collision in Bihar kills three people, injures three others
Patna: A speeding truck rammed into an auto rickshaw carrying passengers near the Pragati Petrol pump within the jurisdiction limits of the Chhabilapur Police Station of Nalanda district on Wednesday, resulting in the death of three people on the spot and three others being grievously injured.
The deceased are identified as Kanchan Devi, Dilip Kumar and Bindi Prasad. The injured individuals, Priyanka Devi, Rinki Devi and Ravi Ranjan Kumar, were initially treated at the Rajgir sub-divisional hospital, but, as their condition was critical, they were shifted to the Pawapuri Medical College and Hospital, as advised by the doctors at the Rajgir hospital. While the medical report states that the condition of all the injured is stable, the incident has caused immense distress among their families.
Deputy Superintendent of Police (DySP) Sunil Kumar Singh, Sub-divisional Police officer Kumar Omkeshwar, Inspector Sanjay Kumar and Chhabilapur and Rajgir Police Station inspectors visited the hospital and inquired about the three people injured in the accident, reports NDTV, adding that the police are investigating the case.
Sanjay Kumar, SHO of the Chhabilapur Police Station, said that they have registered a case against the driver of the truck for rash and negligent driving. The officer added that the driver was absconding since the accident occurred.
The victims were traveling in an auto rickshaw from Rajgir to Barnaussa on Wednesday, when the accident occurred. The eye-witnesses have called the truck-rickshaw collision as severe, adding that it gave rise to chaos and panic at the accident site.
The accident highlights the persistent problem of reckless driving on Bihar's roads, which frequently results in major casualties, including fatalities. The families of the people affected by the accidents have been urging swift justice and proper support for the victims. The local administration has assured to implement necessary measures to ensure safety of road users and bring those responsible for the accident to justice.
