Rupee rises 19 paise to close at 82.94 against US dollar
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New Delhi (PTI): The rupee appreciated 19 paise to 82.94 (provisional) against the US dollar on Friday, as the inclusion of India in the JPMorgan bond index boosted investor sentiment.
Forex traders said the decision of JPMorgan Chase & Co to include Indian government bonds in its benchmark emerging market index is expected to have far-reaching implications for India's debt market and global investors.
At the interbank foreign exchange market, the local unit opened at 82.75 against the US dollar and touched the lowest level of 82.97 in the day trade.
The rupee finally settled 19 paise higher at 82.94 (provisional) against the previous close.
On Thursday, the rupee settled at 83.13 against the US dollar.
India's inclusion in a major global bond index will open doors to increased foreign investment in the nation's debt market, traders said.
Analysts expect India's inclusion in a major global bond index will lead to a direct inflow of USD 20-25 billion in the debt over the 18-21 months.
"The Indian rupee outperformed in the week gone and rebounded after three weeks of downfall after India's bond inclusion in the Global Bond Index. Though the inflows will come next year, the sentimental impact has been seen on the local rupee," Dilip Parmar, Research Analyst, HDFC Securities, said.
The impact of the announcement may not be sustainable amid a rally in the greenback and foreign fund outflows from domestic equities amid a surge in the short-term US bond yields.
In the near-term, spot USDINR is likely to trade in the range of 83.15 to 82.60, Parmar added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.24 per cent to 105.63.
Brent crude futures, the global oil benchmark, advanced 0.79 per cent to USD 94.04 per barrel.
On the domestic equity market front, the BSE Sensex closed 221.09 points or 0.33 per cent higher at 66,009.15. The broader NSE Nifty declined 68.10 points or 0.34 per cent to 19,674.25.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth Rs 3,007.36 crore, according to exchange data.
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Congress using hijab issue to pacify minority anger, alleges Karnataka LoP R Ashoka
Bengaluru: Leader of Opposition in the Assembly R. Ashoka has accused the Congress government of using the hijab issue to placate what he described as discontent among minority voters after the Davanagere by-election.
In a post on X on Wednesday, Ashoka alleged that the state government, instead of addressing issues such as price rise, corruption, farmers’ distress and law and order, was attempting to retain its minority vote base by reviving the hijab issue.
Referring to the 2022 dress code introduced by the BJP government, which prohibited hijab in schools and colleges, Ashoka said the Karnataka High Court had upheld the policy and emphasised the importance of discipline in educational institutions.
He questioned the Congress government’s move to revisit the issue and asked whether setting aside the court-backed policy to benefit one community could be described as secularism.
Ashoka further alleged that while the government was willing to permit hijab, it continued to prohibit saffron shawls.
He accused the government of dividing students on religious lines rather than treating schools and colleges as spaces of equality.
Drawing a comparison with Mamata Banerjee’s government in West Bengal, Ashoka claimed that excessive appeasement politics had harmed the state and warned that the Congress in Karnataka could face a similar political response.
He said voters in Karnataka would teach the Congress a lesson for what he termed “vote-bank politics” and for compromising constitutional and judicial principles.
