Rupee plunges 17 paise to settle at new record low of 85.91 against US dollar
Mumbai, Jan 8: The rupee extended its slide for the second straight session and declined 17 paise to hit a fresh record low of 85.91 against the US dollar on Wednesday amid higher crude oil prices and stronger American currency.
Lacklustre sentiment in domestic equity markets and sustained outflow of foreign funds also played spoilsport even as investors stayed cautious over lower economic growth projection by the government, forex analysts said.
At the interbank foreign exchange, the rupee opened at 85.82 and lost further ground to finally settle at 85.91 against the dollar, 17 paise lower than its previous close.
On Tuesday, the rupee settled with a loss of 6 paise at 85.74 against the dollar.
"This decline is attributed to the strengthening of the US dollar, bolstered by positive economic indicators from the United States, including robust labour market data and increased activity in the services sector. These factors have led to a rise in US Treasury yields, making the dollar more attractive to investors," Anil Kumar Bhansali,
Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
"In response, the Reserve Bank of India (RBI) has intervened through state-run banks to mitigate the rupee's losses. Despite these efforts, the rupee's depreciation reflects broader concerns about India's economic growth and capital flows," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.35 per cent higher at 108.76.
The 10-year US bond yields also remained elevated at 4.67 per cent amid expectations of delayed interest rate cuts by the Federal Reserve.
Brent crude, the global oil benchmark, climbed 0.90 per cent to USD 77.74 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex skid 50.62 points, or 0.06 per cent, to settle at 78,148.49 points, while the Nifty fell 18.95 points, or 0.08 per cent, to 23,688.95 points.
Foreign institutional investors (FIIs) offloaded Rs 3,362.18 crore in the capital markets on a net basis on Wednesday, according to exchange data.
The latest government data released on Tuesday showed India's economic growth rate is estimated to slip to a four-year low of 6.4 per cent in 2024-25 due to poor show by the manufacturing and services sectors.
The gross domestic product (GDP) growth at 6.4 per cent will be the lowest since the Covid year (2020-21) when the country witnessed a negative growth of 5.8 per cent. It was 8.2 per cent in the last fiscal year ended March 2024.
The first advance estimates of the national income for 2024-25 released by the National Statistics Office (NSO) is lower than the 6.6 per cent projected by the Reserve Bank in December 2024.
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Bengaluru jail introduces biometric tracking system for prisoners
Bengaluru: In a bid to curb misconduct and illegal activities inside Parappana Agrahara Central Prison, prison authorities have introduced a new ‘Prisoners Tracking Movement System’ under which inmates will have to undergo biometric verification while entering every barrack.
According to jail officials, biometric systems have been installed across all major sections of the prison, including barracks, visitor rooms, hospital, canteen, kitchen, library, playground, handicraft units and bakery sections. Staff members have also been deployed at these locations.
Officials said inmates visiting the visitors’ room must now obtain a digital token after biometric verification. Details such as the prisoner’s name, identification number and entry time will be updated in the prison software system. This will help authorities maintain a complete digital record of inmates visiting and returning from meeting rooms.
Similar systems have also been introduced at entry points of the hospital, library and other barracks accessed for work-related purposes. Officials said the system will help identify prisoners involved in suspicious or illegal activities with other inmates and enable authorities to track how much time a prisoner spends at different locations inside the prison.
Authorities stated that AI-powered cameras were already being used inside the prison to monitor inmates as well as prison staff. Along with this, digital tracking of prisoner phone calls and a digital token system for visitor meetings have now been added to strengthen surveillance over inmate movement. Officials said the project has been implemented at a cost of around Rs 2.25 crore.
The prison department has also introduced a canteen usage tracking system to monitor prisoners’ spending patterns. Instead of direct cash payments, inmates can purchase bakery items and snacks using wallets or coupons issued within the prison system.
Officials said the digital system will record details including the buyer’s name, items purchased, quantity, date, time and remaining wallet balance. This will allow prison authorities to maintain complete expenditure records of inmates.
