Rupee hits fresh all-time low, settles 5 paise lower at 84.88 against dollar
Mumbai, Dec 12: The rupee depreciated by 5 paise to settle at an all-time low of 84.88 against the US dollar on Thursday, dragged down by negative domestic equity markets, outflow of foreign funds and rise in crude oil prices.
Forex traders said the rupee remains in a weakening mode due to dollar demand from importers and foreign banks.
At the interbank foreign exchange, the rupee opened at 84.85 and touched the lowest-ever level of 84.89 against the greenback during intra-day trade. The unit finally ended the session 5 paise down at a fresh all-time low closing level of 84.88 against the dollar.
On Wednesday, the rupee settled with a gain of 2 paise at 84.83 against the US dollar.
Rupee's previous record low closing level was recorded on December 9, when it settled 20 paise lower at 84.86 against the dollar.
On the domestic macroeconomic front, retail inflation declined in November to 5.48 per cent and came within the Reserve Bank's comfort zone mainly due to easing food prices, creating headroom for a rate cut at the central bank's rate-setting panel meeting under new Governor Sanjay Malhotra in February.
India's industrial production (IIP) growth slowed to 3.5 per cent year-on-year in October 2024, mainly due to poor performance of mining, power and manufacturing, as per official data released on Thursday.
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said the rupee touched a fresh all-time low on strong US dollar and weak domestic markets.
He further said the US dollar gained on rising inflation in the US. However, it was in line with estimates.
"Surge in global crude oil prices may further pressurise the rupee. However, any intervention by the RBI may support the rupee at lower levels. Traders may take cues from PPI (producer price index) and weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of 84.65 to 85.10," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.09 per cent at 106.81.
Brent crude, the global oil benchmark, fell 0.63 per cent to USD 73.06 per barrel in futures trade.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said the rupee continued to hover in a weak range as the US inflation data came in line with expectations, signaling potential continuity in the Federal Reserve's rate-cut trajectory.
"... The dollar held its ground near the key 106 level, keeping pressure on the rupee. Additionally, FII selling resumed after a brief phase of buying, further contributing to rupee weakness," he added.
On the domestic equity market front, the 30-share benchmark index Sensex closed lower by 236.18 points or 0.29 per cent at 81,289.96 points. The Nifty was down 93.10 points, or 0.38 per cent, to 24,548.70 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 3,560.01 crore, according to exchange data.
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Surveillance intensified in Bengal border districts as killers of Suvendu's PA may flee out of state
Kolkata (PTI): Police stations in border districts of West Bengal intensified surveillance and searches as investigators suspect the involvement of professional shooters from neighbouring states in the killing of BJP leader Suvendu Adhikari's close aide, a senior officer said on Friday.
The police are also investigating the role of local criminals who might have provided logistical support to the assailants, he said.
More than 36 hours after Adhikari's personal assistant Chandranath Rath was assassinated by motorcycle-borne gunmen at Madhyamgram in North 24 Parganas district, the police are yet to make any arrest.
“A detailed investigation is underway. The manner in which the attack was carried out suggests extensive reconnaissance and the possible involvement of hired sharpshooters from outside the state,” a senior police officer told PTI.
He also said all police stations in border districts have been alerted.
"Checks are being carried out at multiple points, and CCTV footage from areas along Jessore Road is being thoroughly scanned,” another senior officer said.
According to probe findings, the gunmen allegedly followed Rath’s vehicle before launching the attack.
“The escape route of the gunmen indicates that they were familiar with the locality, or local criminals might have assisted them. Without local support, fleeing through the lanes so quickly would have been difficult,” the officer added.
The police, however, are yet to ascertain the motive behind the murder.
The police and detective department officers have launched extensive searches in and around Madhyamgram near Kolkata.
Heavy deployment of police and central forces has also been made in the area since the murder occurred on Wednesday night.
"A motorcycle used in the crime was registered in 2012 in the name of a resident of Burnpur in Asansol. However, the police found that no person by that name currently resides at the address given during the vehicle registration process," another officer said.
