Rupee slips 1 paisa to close at fresh all-time low of 84.39 against US dollar
Mumbai (PTI): The rupee fell 1 paisa to a new lifetime low of 84.39 (provisional) against the US dollar on Tuesday as persistent foreign fund outflows and a strengthening greenback against major crosses overseas dented investor sentiments.
Forex traders said the rupee is likely to trade between 83.80 and 84.50 in the medium term, with the Reserve Bank of India likely limiting any significant downside, aided by its robust foreign exchange reserves.
At the interbank foreign exchange, the rupee opened at 84.39 against the US dollar. During the session, the local currency touched a high of 84.39 and a low of 84.41. It finally settled at 84.40 (provisional), a decline of just 1 paisa against the US currency, registering a loss for the fifth straight session.
On Monday, the rupee dropped 1 paisa to hit a new lifetime low of 84.38 against the US dollar.
In the last five sessions, the local unit has lost 32 paise against the greenback.
"The rupee traded weaker as foreign funds continued their selling spree in the Indian market. However, the rupee received some relief from falling crude and gold prices, as the reduced pace of decline could potentially improve India's import bill in the coming months," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
Despite this, the dollar index's continued strength above 105 is expected to maintain pressure on the rupee, limiting any significant recovery in the near term.
"With resistance near the 84.25-84.30 zone and support is seen lower at 84.55. This week's focus will be on the US CPI data release, which could influence the dollar's trajectory. Additionally, US Fed Chairperson Jerome Powell's upcoming speech is expected to provide insights that may drive price action in the dollar, currently trading at a four-month high of 105.75," Trivedi said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent higher at 105.60.
Brent crude, the global oil benchmark, rose 0.60 per cent to USD 72.26 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex fell 820.97 points, or 1.03 per cent, to close at 78,675.18 points, while Nifty fell 257.85 points, or 1.07 per cent, to settle at 23,883.45 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday, as they offloaded shares worth Rs 2,306.88 crore, according to exchange data.
Meanwhile, an SBI research report on Monday said that the rupee may depreciate 8-10 per cent against the US dollar during the Trump 2.0 regime.
The report, titled US Presidential Election 2024: How Trump 2.0 Impacts India’s and Global Economy, emphasised that the rupee can have a brief spell of depreciation against the US dollar, followed by appreciation.
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Karnataka Muslim Convention to be held in Bengaluru on May 16
Muslim organisations to release report on Congress govt’s three-year performance
Bengaluru: Major Muslim organisations and federations in Karnataka have decided to organise a large public convention titled ‘Karnataka Muslim Convention’ at Town Hall in Bengaluru on May 16. During the convention, a comprehensive report reviewing the three-year performance of the Congress government under the theme “What did the Congress government promise? What did it do? What next?” will be released.
According to a statement issued on Friday, no politicians will be invited to the convention. The report will be submitted to the government and all MLAs after the event.
The convention is being held at a time when the Congress government is nearing the completion of three years in office on May 20. Muslim organisations have expressed dissatisfaction, alleging that despite extending strong support to the Congress in bringing it to power, the community is being neglected.
The Convention is being organised at time when there are concerns over inadequate political representation for Muslims, alleged neglect of community demands, and the suspension of senior Muslim leaders who had worked for the party for decades.
The organisers said the convention aims to raise questions on what the Congress government has delivered so far and what further steps are expected from the government.
The decision to hold the convention was taken during a meeting held on May 6 at A J International Hotel in Shivajinagar, Bengaluru. Representatives of major Muslim organisations, associations, ulema bodies, federations, and members of the ad hoc committee of Karnataka Rajya Muslim Okkoota attended the meeting.
More than 75 representatives and delegates, including senior ulemas, jamaat leaders, lawyers, retired officials, journalists and members of the KRMO ad hoc committee, participated in the discussions.
Members of the KRMO ad hoc committee’s report preparation team and experts from different sectors presented a detailed report on the Congress government’s three-year performance. The report examined promises made to Muslims on ten major issues, the extent to which they were fulfilled, pending promises, alleged discrimination in representation, and the demands now being placed before the government.
The report covered issues such as the hijab ban, reservation cancellation, hate speech and hate crimes, budget allocation, political representation, waqf matters, the anti-cow slaughter law, anti-conversion law, scholarships and educational grants.
Participants offered suggestions and recommendations on various points, and necessary corrections to the report were accepted after detailed discussions.
The meeting also reportedly expressed strong dissatisfaction over the manner in which the Congress government has treated the Muslim community. Participants are said to have opined that if the government and the Congress party continue in the same manner, the community should keep its political options open.
It was later decided that the report would be officially released at the large public convention on May 16 under the title “Karnataka Muslim Convention – What did the Congress government promise? What did it do? What next?”
The organisers appealed to people from all districts of the state to participate in large numbers and send a strong message to the government and the Congress party through the convention.
They also decided that all organisations, jamaats and associations should work towards ensuring participation from every district in Karnataka.
The statement reiterated that no politicians would be invited to the May 16 convention and that the report on the Congress government’s three-year performance would be submitted to the Chief Minister, Deputy Chief Minister, ministers and MLAs after the event.
