Rupee dives 98 paise to hit all-time low of 89.66 against US dollar
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Mumbai (PTI): The rupee plunged 98 paise to close at its lifetime low of 89.66 against the US dollar on Friday, due to a huge demand for the greenback in the domestic forex market amid widespread selling pressure in local and global equities and trade-related uncertainties.
Concerns over a possible bubble building around artificial-intelligence technology stocks also spooked investor sentiments, forex traders said.
Besides, renewed foreign fund outflows added to the gloom, they added.
At the interbank foreign exchange market, the rupee opened almost flat at 88.67 and before turning extremely volatile in the afternoon session. During the day trade, it moved between a high of 88.59 and a low of 89.66.
In the steepest fall in over three years, the domestic currency nosedived 98 paise to finally settle at 89.66 against the American currency. The previous biggest one-day fall was recorded at 99 paise against the dollar on February 24, 2022.
On Thursday, the rupee depreciated 20 paise to close at 88.68 against the US dollar.
"The Indian rupee witnessed a dramatic move on Friday, breaking its all-time high...in a sudden spike that caught the market completely off guard. Unlike earlier sessions, where news flow guided the price action, this move was largely demand-driven, triggered by an unexpected wave of dollar buying at a time when supply stayed quiet," CR Forex Advisors said in a note.
"What made the move even more striking was that all other major indicators remained broadly stable -- the dollar index, crude oil prices, EM currencies, and even gold hardly moved. This calm backdrop further reinforced that Friday’s jump in USD/INR was not driven by global cues, but purely by domestic dollar demand overwhelming available supply."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.09 per cent up at 100.17.
Brent crude, the global oil benchmark, was trading 2.18 per cent lower at USD 62.00 per barrel in futures trade.
On the domestic equity market front, the Sensex declined 400.76 points, or 0.47 per cent, to settle at 85,231.92, while the Nifty tanked 124.00 points, or 0.47 per cent, to 26,068.15.
Foreign institutional investors sold equities worth Rs 1,766.05 crore on a net basis on Thursday, according to exchange data.
The global risk-off sentiment has spilt into currency markets after a sharp overnight sell-off in cryptocurrencies and AI-linked technology stocks, Anindya Banerjee, Head of Research Currency, Commodity and Interest Rate Derivatives, Kotak Securities, said.
"The sudden unwinding of risk trades is weighing on emerging-market currencies, including the Indian rupee. Adding to the pressure is the lingering uncertainty around the proposed India-US trade deal, which markets had hoped would offer clarity on the bilateral economic outlook. With no firm timelines emerging, sentiment remains fragile," Banerjee said.
Reserve Bank Governor Sanjay Malhotra on Thursday said the central bank does not target any level for the rupee, and the recent depreciation of the domestic currency against the US dollar is primarily due to trade uncertainties following the imposition of tariffs by the US administration.
"We do not target any level. Why is the rupee depreciating? (It) is because of the demand. It is for the markets to decide... It is a financial instrument, and there is a demand for dollars, and if the demand for dollars goes up, the rupee depreciates; and if the demand for the rupee goes up, the dollar comes down, then it appreciates," Malhotra said at an event in the national capital.
The governor also exuded confidence that India will secure a favourable trade deal with the US, which will help ease the pressure on the current account.
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Jai Bhim: Slogan that energised Dalits was first given at this central Maharashtra village
Chhatrapati Sambhajinagar (PTI): 'Jai Bhim': These two words have come to symbolise the awakening and empowerment of the Dalit community in independent India, but not many people know how it originated.
The slogan, which also encapsulates the immense reverence in which Dr Bhimrao Ramji Ambedkar is held, was first raised at the Makranpur Parishad, a conference organised at Makranpur village in Kannad teshil of today's Chhatrapati Sambhajinagar district in Maharashtra.
Ambedkar, the chief architect of India's Constitution, died on December 6, 1956.
Bhausaheb More, the first president of the Scheduled Castes Federation of Marathwada, organised the first Makranpur Parishad on December 30, 1938.
Dr Ambedkar spoke at the conference and asked the people not to support the princely state of Hyderabad under which much of central Maharashtra then fell, said Assistant Commissioner of Police Pravin More, Bhausaheb's son.
"When Bhausaheb stood up to speak, he said every community has its own deity and they greet each other using the name of that deity. Dr Ambedkar showed us the path of progress, and he is like God to us. So henceforth, we should say 'Jai Bhim' while meeting each other. The people responded enthusiastically. A resolution accepting 'Jai Bhim' as the community's slogan was also passed," More told PTI.
"My father came in contact with Dr Babasaheb Ambedkar in his early years. Bhausaheb was aware of the atrocities the Nizam state committed on Dalits. He told Ambedkar about these atrocities, including the pressure to convert. Dr Ambedkar was strongly against these atrocities, and he decided to attend the 1938 conference," he said.
As Ambedkar was against the princely states, he was banned from giving speeches in the Hyderabad state but was allowed to travel through its territories. The Shivna river formed the border between Hyderabad and British India. Makranpur was chosen as the venue for the first conference because it was on the banks of Shivna but lay in the British territory, ACP More said.
The stage made of bricks, from where Dr Ambedkar addressed the conference, still stands. The conference is organised on December 30 every year to carry forward Ambedkar's thought, and the tradition was not discontinued even in 1972 when Maharashtra experienced one of the worst droughts in it history.
"My grandmother pledged her jewellery for the conference expenses. People from Khandesh, Vidarbha and Marathwada attended it. Despite a ban imposed by the Nizam's police, Ambedkar's followers crossed the river to attend the event," said ACP More.
"This is the 87th year of Makranpur Parishad. We have deliberately retained the venue as it helps spread Ambedkar's thought in rural areas," he added.
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