Rupee slumps 25 paise to all-time low of 88.53 against US dollar
Mumbai (PTI): The rupee depreciated 25 paise to an all-time intraday low of 88.53 against the US dollar in early trade on Tuesday, as headwinds like enhanced US tariffs on Indian goods, as well as the US H-1B Visa fee hike, dented investor sentiments.
Forex traders said that global risk aversion and trade policy uncertainty have also exacerbated the rupee's depreciation.
At the interbank foreign exchange, the rupee opened at 88.41, then lost further ground and touched an intraday low of 88.53 against the US dollar, registering a decline of 25 paise over its previous close.
On Monday, the rupee depreciated by 12 paise to close at 88.28 against the US dollar.
Forex traders said the rupee is dwindling towards record low levels as market participants are analysing the likely repercussions of the US's new USD 100,000 H-1B visa levy, which could precipitate a slowdown in remittance growth and curtail service exports to the US.
Moreover, risk aversion in domestic markets may also pressure the rupee, they said.
"The RBI has been the only dollar provider with some small inflows on account of IPOs of Rs 7,500 crore being launched this week, but getting absorbed by the large buying of dollars.
"The RBI, however, has limited direct currency intervention, thus allowing greater volatility and possible further declines in the rupee, which has made new lows against most currencies," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 97.30.
Brent crude, the global oil benchmark, was trading 0.62 per cent lower at USD 66.16 per barrel in futures trade.
On the domestic equity market front, the Sensex fell 207.78 points or 0.25 per cent to 81,952.19 in morning trade, while the Nifty was down 68.40 points or 0.27 per cent to 25,133.95.
Meanwhile, Foreign Institutional Investors offloaded equities worth Rs 2,910.09 crore on Monday, according to exchange data.
Meanwhile, Commerce and Industry Minister Piyush Goyal is leading an official delegation to the US for trade talks.
The delegation plans to hold talks with the US team to take forward discussions with a view to achieving an early conclusion of a mutually beneficial trade agreement.
The minister will visit New York, accompanied by the special secretary in the ministry, Rajesh Agrawal, and other officials.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Protest against demolition drive turns violent in Kolkata, 3 cops injured
Kolkata (PTI): A protest against the recent bulldozer action in Kolkata's Tiljala turned violent on Sunday as demonstrators hurled stones at police personnel in the minority-dominated Park Circus area, injuring at least three officials and damaging several vehicles.
The flare-up came days after bulldozers rolled into Tiljala as part of the West Bengal government's demolition drive against alleged illegal constructions following the factory fire that killed two persons earlier this week.
On Sunday afternoon, a large number of people gathered near Park Circus Seven Point Crossing to protest against the anti-encroachment drive and attempted to block roads, police said.
As police tried to disperse, what they described as an "unlawful assembly", a section of protesters allegedly resorted to stone-pelting, triggering chaos in the area.
Several vehicles parked along the roadside, including those carrying central forces, were vandalised, officials said.
Heavy deployment of Kolkata Police and central forces was made in the area after the clashes. Route marches and intensified patrolling were undertaken in adjoining localities to prevent further escalation and restore normalcy.
Kolkata Police Additional Commissioner Ashesh Biswas said action has already been initiated against those involved in the violence.
"Some people tried to block the road. It was an illegal gathering. The police were trying to disperse them, and there was pelting of stones. Three of our colleagues were injured," Biswas told reporters.
"We have already arrested a few people," he said.
The officer said police followed standard operating procedures, and efforts were underway to identify all those involved in the violence.
"There was an attack on the police. We will see who is behind it and arrest everyone. Strict legal action will be taken," he added.
While the police maintained the agitation was linked to administrative action against illegal buildings, some locals claimed that grievances over alleged restrictions on the use of loudspeakers during religious prayers and curbs on offering prayers on roads had also contributed to the tensions.
The developments come close on the heels of tension in Kolkata's Rajabazar area on Friday, where a standoff broke out after a group of people allegedly attempted to offer prayers on a public road despite restrictions on blocking traffic.
According to police sources, a large contingent of personnel reached the area and asked people to vacate the road, after which the situation turned tense briefly.
Members of the local community argued that holding Friday prayers on roads had been a long-standing practice in the locality, while the administration maintained that keeping roads clear was necessary for traffic movement and maintenance of law and order.
Police, however, did not indicate any direct connection between the Rajabazar incident and Sunday's violence in Park Circus.
Authorities also did not immediately disclose the number of persons arrested in Sunday's clashes or whether any protesters sustained injuries during the confrontation.
