Rupee falls 8 paise to hit all-time low of 84.50 against US dollar
Mumbai, Nov 21: The rupee depreciated 8 paise to settle at an all-time low of 84.50 against the US dollar on Thursday, dragged down by massive sell-off in domestic equity markets and surging crude oil prices amid a volatile geopolitical situation.
According to forex traders, the American currency strengthened due to safe-haven appeal amid escalating tension between Russia and Ukraine, while the continuous outflow of foreign funds also put pressure on the domestic unit.
At the interbank foreign exchange, the rupee opened at 84.41 and touched the lowest-ever level of 84.51 against the greenback during intra-day. The unit ended the session at 84.50 against the dollar, surpassing its previous all-time low closing level of 84.46 recorded on November 14.
On Tuesday, the rupee had settled flat at 84.42 against the US dollar.
The foreign exchange market was closed on Wednesday on account of assembly elections in Maharashtra.
"We expect the rupee to trade around 84.5 against the dollar by end December. A strong dollar continues to create a depreciating bias for currencies globally and is likely to sustain FPI outflows from Indian markets in the near-term.
"However, interventions by the Reserve Bank of India (RBI), supported by India's healthy foreign exchange reserves, should help keep rupee volatility in check," said Rajani Sinha, Chief Economist, CareEdge Ratings.
FPIs have withdrawn approximately USD 4 billion from Indian markets in November, following a record USD 11 billion in outflows in October. While high US Treasury yields and a strong dollar have contributed to these outflows, other domestic factors have also been at play, such as muted corporate earnings and high valuations.
"Over the medium-term, we expect the rupee to trade around 84 by the end of FY25, supported by India's strong fundamentals, including a manageable current account deficit, inclusion in global bond indices, fiscal consolidation and stronger growth relative to other emerging markets. These factors should help maintain India's attractiveness as an investment destination," Sinha added.
Sinha further said "going forward, it will be crucial to monitor the implementation of Trump's policies and China's response, as these will play a key role in shaping market dynamics."
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.02 per cent at 106.66.
Brent crude, the global oil benchmark, surged by 1.84 per cent to USD 74.15 per barrel in futures trade.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee weakened as pressure mounted due to the dollar scaling higher above 106.65 amidst renewed global uncertainties with geopolitical tensions between Russia and Ukraine adding to global risk aversion.
At the same time, sell-off in domestic equity markets was fuelled after the Adani Group faced bribery and fraud charges in the US. "This has further fuelled FII outflows, continuing the trend of capital flight from Indian markets," Trivedi said.
In the domestic equity market, the 30-share BSE Sensex tumbled 422.59 points, or 0.54 per cent, to close at 77,155.79 points, while Nifty tanked 168.60 points, or 0.72 per cent, to settle at 23,349.90 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 5,320.68 crore, according to exchange data.
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Rajnath, Shah, other Union ministers change social media profile photos to 'Op Sindoor' logo
New Delhi (PTI): Defence Minister Rajnath Singh, Home Minister Amit Shah, External Affairs Minister S Jaishankar and other top ministers on Thursday changed the display pictures on their social media profiles to mark the first anniversary of Operation Sindoor following a call by Prime Minister Narendra Modi.
The prime minister, earlier in the day, shared a digital poster depicting the now widely recognised logo of Operation Sindoor and urged others to do the same as a mark of respect to the armed forces.
Operation Sindoor was launched in response to the deadly Pahalgam terror attack, with Indian forces conducting precision strikes on multiple terror infrastructure in Pakistan and Pakistan-Occupied-Kashmir (PoK).
After launching the military operation, the Indian Army, in a post on X, at 1:51 am on May 7 had said, "Justice is served. Jai Hind!"
On its first anniversary, the Indian military on Thursday said, Operation Sindoor -- "precise in action, eternal in memory" -- reflected the country's determination to defend its sovereignty with courage, coordination and strength.
The Army, the Navy, the Indian Air Force, the Headquarters Integrated Defence Staff (HQ IDS) and the defence ministry also updated the display pictures on their social media profiles to mark the anniversary.
Defence Minister Singh, while updating his profile photo on X, said Operation Sindoor stands as a "powerful symbol" of national resolve and preparedness, and that their actions reflected unmatched precision, and set a "benchmark" for modern military operations.
"On the anniversary of Operation Sindoor, we salute the valour and sacrifices of our armed forces, whose courage and dedication continue to safeguard the nation. Their actions during the operation reflected unmatched precision, seamless jointness and deep synergy across services, setting a benchmark for modern military operations," he wrote.
"Operation Sindoor stands as a powerful symbol of national resolve and preparedness, showing that our armed forces are always ready to act decisively when it matters most. It also stands testament to India’s steady advance towards achieving #Atmanirbharta, enhancing capability while reinforcing resilience," he added.
The Ministry of External Affairs, led by its minister Jaishankar, also marked the anniversary, and reasserted and amplified India's diplomatic stand on this operation.
"A year ago, #OperationSindoor demonstrated the nation's resolve to defend itself against cross-border terrorism from Pakistan. With its decisive actions, India ensured accountability for terrorist actions. And underlined that such a serious threat to peace and security will be effectively countered. Under the leadership of PM @narendramodi, India stands strong and determined to convey a message of zero tolerance for terrorism," the EAM posted on X.
Earlier in a separate post, Jaishankar too changed his profile picture and posted an image of the Operation Sindoor logo on the timeline.
Home Minister Shah, in a post on X, said, "Operation Sindoor stands as an epochal mission of India that will always remind our enemies of the infallible striking power of our armed forces."
After Indian forces had launched the operation in the early hours of May 7, Pakistan later also launched offensives against India, and all subsequent counter-offensives by India were also carried out under Operation Sindoor.
The military conflict between the two nuclear-armed neighbours, lasting nearly 88 hours, halted after they reached an understanding on the evening of May 10.
Union Culture and Tourism Minister Gajendra Singh Shekhawat, Education Minister Dharmendra Pradhan, Railway Minister Ashwini Vaishnav, Environment Minister Bhupendra Yadav, Women and Child Development Annapurna Devi and Jal Shakti Minister C R Paatil too updated their profile photos.
The Indian Army in an early morning post wrote, "#OperationSindoor India's resolute response calibrated and precise. Committed to safeguarding sovereignty and its people. #JusticeServed Jai Hind".
It also shared a video clip encapsulating the circumstances that led to the decisive military action in the early hours of May 7 last year, as well as some footage offering a glimpse to the military might of India.
"India will identify, track and punish every terrorist and their backers," PM Modi had earlier said in his address, whose excerpt is part of the widely shared clip.
Recalling the military action launched on the intervening night of May 6-7, the Indian Air Force put out the anniversary post on X at 1:05 AM.
"Operation Sindoor Justice served. Precise in action, eternal in memory-Operation Sindoor continues. India forgets nothing-India forgives nothing. #operation #Sindoor #operationsindoor #IAF," the IAF posted.
The Headquarters Integrated Defence Staff (HQ IDS) also posted the anniversary message at 1:05 AM, saying, "Symbol of national resolve #OpSindoor JAI HIND #OpSindoor #indianarmedforces #NationalSecurity".
The Indian embassies in the US, the UK, Spain, France, Germany and Italy also updated their display pictures on their social media profiles.
The embassies in France, Germany, Spain and Italy posted on X in French, German and Italian, amplifying the message of the Indian leadership on Operation Sindoor's anniversary in the respective countries.
The Indian Embassy in the UK posted on X, "One year of #OperationSindoor A tribute to India’s resolve, unity, and unwavering stand against terrorism. Saluting the courage and sacrifice of our armed forces who protect the nation with pride and honor. #OpSindoor #IndiaAgainstTerrorism #IndianArmedForces #NationalSecurity #IndiaFirst #SaluteOurForces #JaiHind #OperationSindoorContinues".
The Indian embassy in Israel also changed its profile photo on X and reposted PM Modi's post, and the X account of the embassy in Iran too changed the display picture to the logo of Operation Sindoor.
The Indian Navy in an early morning post on X said Operation Sindoor reflected India's determination to defend its sovereignty with courage and strength.
"Nation's Resolve. Forces United In moments that test a nation's will, the Indian Defence Forces stand united - resolute in purpose, precise in action and unwavering in commitment. #OperationSindoor reflects India's determination to defend its sovereignty with courage, coordination and strength. #OpSindoor #NationFirst #IndianNavy @HQ_IDS_India @adgpi @IAF_MCC," the Navy posted and changed its profile photo.
