Rupee plunges 47 paise to close at 88.69 against US dollar
Mumbai (PTI): The rupee depreciated 47 paise to close at 88.69 against the American currency on Thursday on a strong US dollar, weak domestic markets, and a hawkish US Fed.
Forex traders said the US Federal Reserve slashed interest rates by 25 bps in its Federal Open Market Committee (FOMC) meeting. However, Fed Chair Jerome Powell's commentary was hawkish, trimming rate-cut expectations for December.
Moreover, month-end dollar demand from Oil Marketing Companies (OMCs) and foreign fund outflows may also weigh on the rupee.
At the interbank foreign exchange market, the rupee opened at 88.37, and later fell to an intra-day low of 88.74. The local unit finally settled at 88.69 against the greenback, registering a loss of 47 paise from its previous close.
On Wednesday, the rupee appreciated seven paise to close at 88.22 against the US dollar.
"We expect the rupee to trade with a slight negative bias on a strong US Dollar, weak domestic markets and a hawkish Fed. Month-end dollar demand from OMCs may also weigh on the rupee," said Anuj Choudhary, Research Analyst, Currency and Commodities, Mirae Asset ShareKhan.
The US Fed cut rates by 25 bps, as expected. However, Fed Chair Jerome Powell said the December cut was not a foregone conclusion, given inflation remains above target and labour-market uncertainties persist.
Following Powell's remarks, market expectations of a December rate cut fell sharply, prompting a rise in US Treasury yields and a stronger dollar, traders said.
Choudhary further noted that the weakness in crude oil prices may support the rupee at lower levels. "USDINR spot price is expected to trade in a range of 88.45 to 89," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 99.12.
Brent crude, the global oil benchmark, fell 0.65 per cent to USD 64.50 per barrel in futures trading.
On the domestic equity markets front, the Sensex tanked 592.67 points to settle at 84,404.46, while the Nifty dropped 176.05 points to 25,877.85.
Foreign institutional investors sold equities worth Rs 3,077.59 crore on Thursday, according to exchange data.
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BJP using women's quota bill as front to pass Delimitation Bill that will break India: Mamata
Cooch Behar (WB) (PTI): Chief Minister Mamata Banerjee on Friday alleged the BJP-led NDA government at the Centre was using the proposed amendment to the women's quota law in Parliament as a front for the Delimitation Bill that would "break the country into pieces".
The TMC will fight this Central government's move at every step, she asserted at her party's poll rally here.
The Constitution (131st Amendment) Bill to tweak the women's quota law, along with the Delimitation Bill and the Union Territories Laws (Amendment) Bill, to implement the proposed amended women's quota law, in the Union territories of Delhi, Puducherry and Jammu and Kashmir, were introduced in the Lok Sabha on Thursday.
According to the Constitution amendment bill, Lok Sabha seats will be increased to a maximum of 850 from the current 543 to "operationalise" the women's reservation law before the 2029 parliamentary polls, following a delimitation exercise based on the 2011 Census.
Seats will also be increased in state and Union territory assemblies to accommodate 33 per cent reservation for women.
Opposing the Centre's move, Banerjee alleged that "the BJP brought the Delimitation Bill while keeping the women's reservation bill at the front".
"The BJP is trying to increase the number of seats in the Lok Sabha to nearly 850 through the Delimitation Bill. It will break the country into pieces," the TMC supremo said.
She also alleged that Prime Minister Narendra Modi was not speaking the truth about the development of north Bengal at a BJP rally last week.
"The prime minister said nothing was done for the development of north Bengal. But we spent Rs 1.72 lakh crore on the development of the region," Banerjee said and asked Modi to cross-check data before making such remarks.
