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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Sri Lanka repatriates remains of 84 Iranian sailors killed in US torpedo strike
Colombo (PTI): Sri Lanka has repatriated the remains of 84 Iranian sailors who were killed when their frigate was sunk by a US submarine, an official said.
Last week on Wednesday, Sri Lanka said it had recovered 84 bodies of Iranian sailors after the US submarine attack sank the Iranian frigate IRIS Dena off Galle on the island’s southern coast.
The ship was returning to Iran from Visakhapatnam, India, where it had participated in a naval fleet review exercise.
"Human remains were sent by the Iranian embassy on Friday - all 84", a foreign ministry spokesman said.
They were sent on a chartered Turkish airliner, which departed on Friday, reporters present at the Mattala international airport in the southern district of Hambantota said.
The Chief Magistrate, Sameera Dodangoda, gave the order on March 11 to the Director of the National Hospital at Karapitiya to hand over 84 bodies of the sailors from Iris Dena to the Embassy of Iran.
Following the magistrate's court order, the arrangements were finalised.
The bodies were kept at the Karapitiya hospital in Galle along with 32 survivors who were warded as a result of the US torpedo attack on the ship on March 4.
The Sri Lankan government had earlier said they will be keeping the bodies until the situation would improve so as to repatriate them.
They were being kept under makeshift refrigeration as the hospital’s morgue capacity was found inadequate.
The 32 survivors had been discharged on Sunday and sent to the nearby Sri Lankan airbase at Koggala, Galle.
