Rupee rises 8 paise to 84.78 against US dollar in early trade
New Delhi (PTI): The rupee recovered from its all-time low and appreciated 8 paise to 84.78 against the US dollar in morning trade on Tuesday, supported by fresh foreign fund inflows and a positive trend in domestic equities.
The government on Monday appointed Revenue Secretary Sanjay Malhotra as the 26th Governor of the Reserve Bank of India.
Forex traders said Shaktikanta Das's departure introduced uncertainty, as his tenure was marked by policies that safeguarded the rupee against drastic declines. "Adding to this volatility, Sanjay Malhotra's stance prioritising economic stability over revenue concerns stirred mixed reactions," CR Forex Advisors MD Amit Pabari said.
At the interbank foreign exchange, the rupee opened at 84.80 and moved in a tight range and touched 84.78 against the greenback, registering a gain of 8 paise over its previous close. It was later trading at 84.82 against the dollar.
On Monday, the rupee saw its steepest fall in over a month and plunged 20 paise to settle at lowest-ever level of 84.86 against the US dollar.
"It depends on what the new governor decides on tackling the weakness in rupee or whether he follows the policies of his predecessor," Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP said, adding that "the weakness in rupee is here to stay for now unless RBI Governor decides the other way.
Shaktikanta Das, who will demit office as the Governor of the Reserve Bank of India on Tuesday, was the key man behind the planning and execution of the demonetisation drive and rollout of the landmark goods and services tax (GST). At the RBI, he steered India's monetary policy response during the challenging period of the pandemic.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 106.15, unchanged from its previous close.
Brent crude, the global oil benchmark, fell 0.36 per cent to USD 71.88 per barrel in futures trade.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 83.08 points, or 0.10 per cent higher, to 81,591.54 points. The Nifty rose 23.35 points, or 0.09 per cent, to 24,642.35 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday, as they purchased shares worth Rs 724.27 crore, according to exchange data.
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No need for guv: DMK leader Kanimozhi
Chennai (PTI): Senior DMK leader Kanimozhi Karunanidhi on Friday reiterated her party’s opposition to the office of the governor amid uncertainty over government formation in Tamil Nadu after a fractured election mandate.
Speaking to PTI Videos, Kanimozhi emphasised that the DMK’s demand for the abolition of the governor’s post remained unchanged, especially as questions arise over constitutional propriety during the current political transition.
"Our position that we do not need a governor at all is something the DMK has never changed at any point in time," she said.
When asked about the governor’s actions following the election results—particularly the delay in inviting the leading party to form the government—Kanimozhi pointed to what she described as the "inherent friction" between the office of the governor and the political interests of the state.
She said the current situation "raises a lot of questions" and requires introspection regarding constitutional procedures.
Kanimozhi described the election results as lacking a "clear mandate", which she identified as the primary reason for the prevailing political uncertainty in the state.
"What the people decide is supreme," she said, adding that while the mandate was not decisive, it must be respected.
The Thoothukudi MP attributed the ongoing delays and "many confusions" to the absence of a decisive majority for any single party.
She firmly dismissed rumours about the DMK potentially supporting the AIADMK from outside to help stabilise the government.
She described such reports as mere "speculation" and "rumours".
"We can’t be responding to every rumour," she said, declining to comment on the AIADMK’s claims regarding its numbers to form the government.
The political situation in Tamil Nadu remains fluid as stakeholders await the governor’s next constitutional step in an Assembly where no party has secured a clear majority.
The DMK and AIADMK—both of which suffered significant losses to the TVK—are reportedly exploring tactical manoeuvres to navigate the hung Assembly.
The TVK, with 108 seats and the support of Congress’s five MLAs, is still short of the majority mark. The DMK and AIADMK secured 59 and 47 seats, respectively.
