Rupee falls 1 paisa to all-time low of 84.40 against US dollar in early trade
Mumbai, Nov 13 (PTI) The rupee slipped 1 paisa to an all-time low of 84.40 against the US dollar in early trade on Wednesday, as persistent foreign fund outflows and a muted trend in domestic equities weighed on the local unit.
Forex traders said the USDINR pair has shown significant volatility in recent sessions, with the rupee inching closer to its all-time low of 84.40. This downward pressure is largely driven by global factors, particularly the Dollar Index’s strengthening.
At the interbank foreign exchange, the rupee opened at 84.40 against the greenback, registering a fall of 1 paisa over its previous close.
On Tuesday, the rupee fell 1 paisa to a new lifetime low of 84.39 against the US dollar.
"It appears that the rupee has established support around the current levels, with depreciation limited near 84.50," CR Forex Advisors MD Amit Pabari said.
Pabari further added that the RBI stands tall as the depreciation in the rupee seems to be limited as the Reserve Bank of India (RBI) continues to sell the dollars to protect the sharp depreciation.
"For the 5th consecutive week, India’s forex reserves declined, possibly due to RBI selling the dollars. Currently, the forex reserves of India stand at USD 682 billion down from the recent all-time high of USD 704 billion," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.04 per cent at 105.98.
Brent crude, the global oil benchmark, rose 0.25 per cent to USD 72.07 per barrel in futures trade.
On the domestic equity market front, Sensex was trading 210.66 points, or 0.27 per cent lower, to 78,464.52 points. The Nifty fell 100.45 points, or 0.42 per cent, to 23,783.00 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, as they offloaded shares worth Rs 3,024.31 crore, according to exchange data.
On the macroeconomic front, retail inflation breached the Reserve Bank's upper tolerance level, soaring to a 14-month high of 6.21 per cent in October mainly on account of rising food prices.
Inflation based on the consumer price index (CPI) was 5.49 per cent in September and 4.87 per cent in the year-ago month.
India's industrial production expanded by 3.1 per cent in September after recording a contraction in the preceding month, as all three major segments -- mining, manufacturing, and power generation -- showed improvement.
However, the growth in the Index of Industrial Production (IIP) during the month was lower than 6.4 per cent registered in September 2023.
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We received request; will decide soon whether to support TVK: Thirumavalavan
Chennai (PTI): VCK leader Thol Thirumavalavan on Thursday said that his party received a request from TVK for support and the high-level committee of his party will decide whether to support the Vijay-led party to form the government.
The TVK won 108 seats in the 234-member Assembly and emerged as the single largest party. Vijay will have to resign from one of the two constituencies he has won.
Though the Congress party, which has five MLAs, has extended support to TVK, the actor-politician-led party was still short of as many seats to touch the magic number of 118, the majority mark in the 234-member House.
"We received the request letter from TVK. We are thankful for that. We have not ignored his (Vijay's) request. We have a procedure. Therefore, our party's high-level committee will decide soon. We are going to discuss the merits and demerits of our position," the VCK leader told reporters here.
With regard to the delay in the governor's call to the TVK, which is the single largest party, to form the government, Thirumavalavan requested the governor to invite Vijay to form the government. "It is a constitutional right and people's verdict," he added.
Asserting that the governor cannot say that Vijay should hold 118 MLAs' support now itself to form the government, he said that after taking over power, Vijay has to prove an absolute majority only on the floor of the Assembly.
