Rupee falls 9 paise to record low of 90.87 against US dollar in early trade
Mumbai (PTI): The rupee plunged 9 paise to a record low of 90.87 against the US dollar in early trade on Tuesday, weighed down by sustained FII outflows and no breakthrough in the India-US trade deal.
However, a weaker greenback and a decline in global crude oil prices capped further losses in the domestic unit, according to forex traders.
At the interbank foreign exchange, the rupee opened at its all-time low of 90.87 against the US dollar, down 9 paise from its previous close, and traded in a narrow range of 90.77- 90.87 in early trade.
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The rupee on Monday settled at a new all-time low of 90.78 against the US dollar, registering a loss of 29 paise over its previous close, weighed down by uncertainty over an India-US trade deal and persistent foreign fund outflows.
"The US-India trade deal still seems to be off by a distance with the Commerce Secretary saying the first phase will be signed before the end of the year and news that we are closest to the deal being signed. The uncertainty has clouded the recovery on the USD/INR pair as the rupee opened lower with dollar buying happening every day," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Even a reduction in trade deficit on Monday could not bring about a recovery in the rupee with Foreign Institutional Investors (FII) outflows continuing, he added
According to the latest government data released on Monday, India's trade deficit narrowed to a five-month low of USD 24.53 billion in November, as exports rebounded by 19.37 per cent to a six-month high of USD 38.13 billion after contracting in October, driven by higher shipments of engineering and electronics goods.
At the same time, the country's imports dipped by 1.88 per cent to USD 62.66 billion due to a fall in the inbound shipments of gold, crude oil, coal, and coke.
FIIs sold equities worth Rs 1,468.32 crore on Monday, according to exchange data.
Also, wholesale price inflation stayed in the negative for the second consecutive month in November at (-) 0.32 per cent, even though there was an uptick in prices of food articles like pulses and vegetables on a month-on-month basis, government data showed on Monday.
Wholesale Price Index (WPI)-based inflation was at (-) 1.21 per cent in October and 2.16 per cent in November last year.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 98.27.
Brent crude, the global oil benchmark, was trading 0.61 per cent lower at USD 60.19 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index, Sensex, declined 363.92 points to 84,849.44 in early trade while the Nifty was down 106.65 points to 25,920.65.
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D K Shivakumar patiently awaits Congress decision on leadership, says brother Suresh
Bengaluru (PTI): Deputy Chief Minister D K Shivakumar is patiently waiting for the Congress's decision on the leadership issue, his brother and former MP D K Suresh said on Tuesday.
Speaking to reporters, Suresh described Shivakumar as a "disciplined soldier of the party" who is acting in the interest of both the party and its legislators. He added that senior leader Rahul Gandhi has assured that an appropriate decision will be taken at the right time.
"The party has already asked him to be patient. Rahul Gandhi, during the meeting in Mysuru, also said that an appropriate decision would be taken at the right time," he said, reiterating that Shivakumar has been a disciplined soldier of the party from the beginning.
"In the interest of the party and legislators, and with the goal of keeping all 140 legislators together, he is patiently waiting for the party’s decision," Suresh said.
On whether there was a deadline for patience, he said, "Power doesn’t come easily to anyone. If it is written in my brother’s fate, he will become the chief minister. The post is not easy, and it cannot be achieved without patience."
Suresh further emphasised the importance of unity ahead of the 2028 Assembly elections. "The party will have to fight the polls unitedly. In that direction, keeping in mind the interests of legislators and workers, patience is important," he said.
Highlighting Shivakumar’s commitment to party discipline, Suresh added, "He is also the party president and should maintain discipline first, which he is following diligently."
The 'leadership tussle' in Karnataka has intensified amid speculation of a possible change in the chief ministership after the Congress government completed the halfway mark of its five-year term on November 20. The speculation is linked to a reported "power-sharing" arrangement between CM Siddaramaiah and Shivakumar during the government’s formation in 2023.
Shivakumar had earlier indicated that discussions over the leadership issue involving himself and Siddaramaiah were held in the presence of the Congress high command, and that a decision had been reached, with timing yet to be finalised.
"Time will answer everything," he said. Shivakumar has also asserted that he enjoys the support of all 140 ruling party legislators, including CM Siddaramaiah.
When asked how long supporters of Shivakumar should remain patient, Suresh referred to the upcoming legislative session from January 22 to 31. "After that, we will have to wait and see what the high command decides," he said.
On concerns that a leadership change could affect votes from certain communities, Suresh stressed the party’s inclusive approach. "A politician needs Vokkaliga votes, Lingayat votes, as well as SC and ST votes. Appeasing one section alone won’t help. Every vote counts. Caste-based politics hampers development at both state and national levels," he said.
Suresh also highlighted Shivakumar’s loyalty to the party rather than to any individual leader. "While some people are loyal to personalities or power, D K Shivakumar has always stood by the party in all situations, whether in power or not. He sees everything patiently," he said, adding that his comments on Panchayat chairmen were illustrative and not meant to apply to state-level politics.
Asked whether Shivakumar’s intentions and patience had been conveyed to Rahul Gandhi, Suresh said the national leader considers the political situation across the country and makes decisions after consulting all stakeholders. "We have faith that the party leadership, including Rahul Gandhi, will take everyone into confidence before deciding," he said.
