Rupee sees high volatility against US dollar in early trade
Mumbai (PTI): The rupee witnessed high volatility in early trade on Wednesday, as support from easing crude oil prices was offset by uncertainty over the India-US trade deal and persistent foreign fund outflows.
Forex traders said the key driver of rupee weakness in December was continued FPI selling across both equity and debt markets, with foreign investors repeatedly selling several billion dollars’ worth of Indian assets on a daily basis in the last few months, the selling intensifying in the last two months.
ALSO READ: Rupee falls 9 paise to record low of 90.87 against US dollar in early trade
However, with Brent crude oil prices hovering near recent multi-year lows of USD 59 per barrel, the local unit was supported at lower levels.
At the interbank foreign exchange market, the rupee opened at 91.05 against the US dollar, down 12 paise from its previous close.
The domestic unit, however, witnessed a sharp recovery and appreciated 97 paise to touch an early high of 89.96 against the American currency and was trading at 90.18 against the US dollar at 09.46 hrs.
On Tuesday, the rupee tanked below 91 per dollar, hitting a low of 91.14. It finally settled at 90.93 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.17 per cent higher at 98.31.
Brent crude, the global oil benchmark, was trading at USD 59.54 per barrel in futures trade, as record non-OPEC supply, weak China data and optimism over a Ukraine ceasefire were the main reasons for the current fall, traders said.
Meanwhile, Minister of State for Finance Pankaj Chaudhary on Tuesday informed Parliament that, "During the current financial year, the depreciation of the INR has been influenced by the increase in trade deficit and likely prospects arising from the ongoing developments in India's trade agreement with the US, amid relatively weak support from the capital account."
"The depreciation of currency is likely to enhance export competitiveness, which in turn impacts the economy positively. On the other hand, depreciation may raise the prices of imported goods. However, the overall impact of exchange rate depreciation on domestic prices depends on the extent of the pass-through of international commodity prices to the domestic market," he said.
On the domestic equity market front, the 30-share benchmark index Sensex was trading 146.09 points higher at 84,825.95, while the Nifty was up 62.05 points at 25,922.15.
Foreign Institutional Investors sold equities worth Rs 2,381.92 crore on Tuesday, according to exchange data.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, the rupee may see a slow and steady move towards 92 in the coming days, with no signs of any trade deal happening between India and the US, which has also been a cause for the equities to fall.
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11 Indian nationals charged in US over visa fraud
New York (PTI): Eleven Indian nationals, living illegally in the US, have been charged with visa fraud for conspiring to carry out staged armed robberies of convenience shops, according to US federal prosecutors.
Authorities said the suspects are accused of organising fake robberies for the purpose of allowing the store clerks to falsely claim they were crime victims on immigration applications towards getting a Green Card.
Jitendrakumar Patel, 39, Maheshkumar Patel, 36, Sanjaykumar Patel, 45, Dipikaben Patel, 40, Rameshbhai Patel, 52, Amitabahen Patel, 43, Ronakkumar Patel, 28, Sangitaben Patel, 36, Minkesh Patel, 42, Sonal Patel, 42 and Mitul Patel, 40 have been charged with one count of conspiracy to commit visa fraud.
They all were living unlawfully in various US states such as Massachusetts, Kentucky and Ohio.
Dipikaben was deported to India after unlawfully residing in Weymouth, Massachusetts, the Justice Department said in a statement.
Jitendrakumar, Maheshkumar, Sanjaykumar, Amitabahen, Sangitaben and Mitul were arrested in Massachusetts and released following an initial appearance in federal court in Boston on Friday.
Rameshbhai, Ronakkumar, Sonal and Minkesh were arrested and made their initial appearances in Kentucky, Missouri and Ohio. They will appear in federal court in Boston at a later date.
According to the charging documents, in March 2023, Rambhai and his co-conspirators set up and carried out staged armed robberies of at least six convenience/liquor stores and fast food restaurants in Massachusetts and elsewhere.
It is alleged that the purpose of the staged robberies was to allow the clerks present to falsely claim that they were victims of a violent crime on an application for a U non-immigration status (U Visa).
A U Visa is available to victims of certain crimes who have suffered mental or physical abuse and who have been helpful to law enforcement in the investigation or prosecution of criminal activity. The U visa offers an immigrant work authorisation and a path to a Green Card within 5–10 years.
Authorities said that in the course of the alleged staged robberies, the “robber” would threaten store clerks or the owners with an apparent firearm before taking cash from the register and fleeing, while the interaction was captured on store surveillance video.
The clerks or the store owners would then wait five or more minutes until the “robber” had escaped before calling the police to report the “crime.”
The “victims” are alleged to have each paid Rambhai to participate in the scheme. In turn, Rambhai allegedly paid the store owners for the use of their stores for the staged robbery.
Rambhai, the “robber,” and the getaway driver were previously charged and convicted.
The 11 defendants charged on Friday are alleged to have either arranged with the organiser to set up each robbery, or paid for themselves or a family member to participate as a “victim.”
The charge of conspiracy to commit visa fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of USD 250,000.
