Rupee falls 3 paise against US dollar
Mumbai (PTI): The rupee fell 3 paise to close at 88.77 against the US dollar on Tuesday, weighed down by a strong American currency against major crosses overseas.
The domestic currency traded in a tight range as investors preferred to remain on the sidelines amid uncertainties over global trade, forex traders said.
At the interbank foreign exchange market, the rupee opened with a marginal gain at 88.72 against the US dollar and touched the intra-day low of 88.79 before ending the session at 88.77, registering a loss of 3 paise from its previous closing level.
On Monday, the rupee gained 5 paise to settle at 88.74 against the US dollar.
Investors moved cautiously after the US Senate once again rejected both Democratic and Republican proposals to fund the government, prolonging the government shutdown into its sixth day, traders said.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee witnessed limited volatility as FII selling eased and crude prices remained soft.
However, the domestic unit continues to hover near its all-time low levels, keeping concerns of further weakness alive, possibly toward 90 levels if sentiment worsens, he added.
"This week's focus remains on Fed Chair Powell's speech, the release of Fed meeting minutes, and key US data on unemployment and non-farm payrolls, which could induce sharp volatility. The rupee range is expected between 88.45 and 88.95," Trivedi said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, increased 0.34 per cent to 98.13.
Brent crude, the global oil benchmark, was trading 0.37 per cent lower at USD 65.25 per barrel in futures trading.
Commerce and Industry Minister Piyush Goyal on Tuesday said India and the US are in continuous dialogue on the proposed bilateral trade agreement, and all possibilities are there to meet the November deadline for concluding the talks.
Goyal's comment came a day after External Affairs Minister S Jaishankar said that any trade deal between India and the US must respect New Delhi's "red lines", and efforts are underway to reach an understanding.
According to Jaishankar, there were "issues" between India and the US, and many of them were linked to the inability to firm up the proposed trade deal, even as he noted that "there are things you can negotiate and there are things you can't".
In the domestic equity markets, Sensex climbed 136.63 points or 0.17 per cent to settle at 81,926.75, while Nifty went up 30.65 points or 0.12 per cent to 25,108.30.
Foreign institutional investors bought equities worth Rs 1,440.66 crore on a net basis on Tuesday, according to exchange data.
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Parliamentary panel to summon airline executives, regulator over flight disruptions
New Delhi (PTI): A parliamentary panel is likely to summon top executives of private airlines and the civil aviation regulator over the mass cancellation of IndiGo flights that has left thousands of travellers stranded across the country's airports.
The Parliamentary Standing Committee on Transport, Tourism and Culture, chaired by JD(U) leader Sanjay Jha, is likely to seek an explanation from top executives of airlines and officials from the Directorate General of Civil Aviation (DGCA) and the Ministry of Civil Aviation about the cause of disruption in air services and possible solutions.
A member said the panel has taken serious note of the difficulties faced by thousands of passengers due to disruption in air services.
Even parliamentarians, who were in the national capital for the Winter Session, faced the brunt of flight cancellations by IndiGo and delays by other airlines, the panel member said.
Several MPs also received complaints from people about air fares shooting up due to the scenario.
Meanwhile, CPI(M) Rajya Sabha member John Brittas, who is not part of the standing committee on transport, has demanded setting up of a joint parliamentary committee or a judicial inquiry into the large-scale disruption of flights.
IndiGo cancelled more than 220 flights at Delhi and Mumbai airports on Sunday, as the disruptions entered the sixth day even as efforts were on to normalise operations.
The aviation regulator, DGCA, on Saturday sent notices to IndiGo CEO Pieter Elbers and COO and Accountable Manager Porqueras, seeking explanation.
In a statement issued on Sunday, IndiGo said the Board of Interglobe Aviation, its parent company, has set up a Crisis Management Group, which is meeting regularly to monitor the situation. The company's Board of Directors is doing everything possible to take care of the challenges faced by its customers and ensure refunds to passengers, it said.
