Rupee falls 5 paise to hit new all-time low of 84.37 against US dollar
Mumbai, Nov 8: Declining for the third straight session, the rupee dropped 5 paise to hit a new lifetime low of 84.37 against the US dollar on Friday, weighed down by persistent foreign fund outflows and a muted trend in domestic equities.
Forex traders said the US Federal Reserve's recent decision to cut interest rates signals a shift in the global financial landscape. Moreover, with Donald Trump's tax and trade policies influencing global markets, volatility could re-enter the rupee's trajectory.
At the interbank foreign exchange, the rupee opened at 84.32 against the US dollar. During the session, the local currency touched a high of 84.31 and a low of 84.38. It finally settled at 84.37, a loss of 5 paise against its previous close.
On Thursday, the rupee slipped 1 paisa to close at a fresh lifetime low of 84.32 against the US dollar.
In the last three sessions, the local unit has lost 28 paise against the greenback.
The rupee hit a record low on account of extending sell-off in the domestic markets and continuous foreign fund outflows. Overnight gains in crude oil prices also weighed on the rupee, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
However, the softening of the US Dollar index cushioned the downside. The dollar softened as the US Federal Reserve cut interest rates by 25 bps in line with street estimates. The Fed Chair Jerome Powell said in his presser that the US economy was strong and some downside risks seemed to have diminished.
In its latest monetary policy announcement, the US Fed reduced its benchmark rate by 0.25 basis points to a target range of 4.5 per cent-4.75 per cent.
In its accompanying statement, the Fed adopted a neutral-to-dovish tone, acknowledging balanced risks in inflation and employment.
"We expect the rupee to trade with a negative bias on overall strength in the US dollar and weak domestic markets. FII outflows may also weigh on the rupee. However, any intervention by the Reserve Bank may support the rupee at lower levels," Choudhary added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent lower at 104.50.
Brent crude, the global oil benchmark, fell 1.10 per cent to USD 74.80 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex fell 55.47 points, or 0.07 per cent, to close at 79,486.32 points, while Nifty declined 51.15 points, or 0.21 per cent, to settle at 24,148.20 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday, as they offloaded shares worth Rs 3,404.04 crore, according to exchange data.
"Rupee has been on a low in the last few days though it is the second best-performing currency amongst its peers after the election of Trump as president.
"However, foreign funds and oil companies are constant buyers of the currency pair, and therefore, we are not finding rupee to gain from here except if RBI sells in a big way and brings it down," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
For now, it is better to buy on dips and keep exports on hold until the rupee finds its level. There also seems to be a cash dollar shortage in the markets as the RBI is not supplying sufficient dollars, which FPIs are buying, Bhansali added.
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Mangaluru: Court sentences three men to life term for rape and murder of minor girl
Mangaluru (Karnataka), Nov 8: A local court on Friday sentenced three men to life imprisonment for the rape and murder of an eight-year-old girl here in November, 2021.
The district sessions court of Dakshina Kannada passed the order against Jay Singh, Mukesh Singh and Manish Tirki, convicted for the crime.
According to the police, the trio taking advantage of the extreme alcohol addiction of the parents of the girl had lured her into a tile factory, raped and murdered her and mutilated the body and threw it into a gutter near the factory.
This happened in Ulaibettu panchayat limits in Mangaluru rural police station. The police had filed a case under POCSO Act and IPC then.
