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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Liquor manufactures can sell liquor on tetra packs in Odisha: Minister
Bhubaneswar (PTI): Odisha Excise Minister Prithviraj Harichandan on Friday said the government has allowed the sale of liquor on tetra packets with certain criteria in its new Excise Policy for 2026-29.
Speaking to media persons here, Harichandan said selling liquor in tetra packs was there in the state's excise policy since 2014. However, it is not yet made available in the Odisha market, he said.
"If any licensed liquor manufacturer or vendor wants to produce or sell the liquor on tetra pack, they can do it. The government will not restrict them," he clarified.
The state government is giving priority for proper regulation of manufacturing and selling of liquor in the state, the minister added.
"We just ensure that there is no illegal sale of liquor in the state," he stated.
As per the new Excise Policy, which came into force from April 1, India-made foreign liquor (IMFL) manufacturers can supply their products in tetra packaging and in glass bottles in specified sizes. Only 180 ml can be supplied in tetra packs.
The tetra packs must have six protective layers and must have the shelf life or the date fit for consumption clearly mentioned on the packaging, the policy guidelines said.
Before using the tetra packs for packaging of liquor, the manufacturing units must take certification from the Central Food Technology Research Institute or Indian Institute of Packaging, or any such institute as notified by the excise commissioner, it said.
Earlier, opposition leaders had demanded the rollback of the government's decision to introduce the sale of liquor in tetra packs, calling the move "unethical" and "anti-youth".
