Rupee hits new low of 55.47 against US dollar, RBI still absent

May 22, 2012

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Mumbai, May 22: Continuing its free fall for the fifth day in a row, rupee set a new low of 55.47 before ending at 55.39 against the dollar on relentless demand for the American currency from importers, especially oil refiners, even as foreign fund flows remained muted.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply higher at 54.60 per dollar from its last close of 55.03 on initial surge in stocks.

But soon dollar demand overshadowed the rupee sentiment even as other Asian currencies rose for a second day despite rating agency Fitch downgrading Japan's sovereign rating by one notch to A+ with a negative outlook.

Strong dollar demand from importers pulled rupee down to a low of 55.47. The domestic currency, which has lost over 11 per cent since March this year, today finally closed at 55.39, showing a fall of 0.65 per cent or 36 paise.

Forex dealers said for the second day in a row, there was no RBI role on Tuesday despite rupee touching new lows. They said capital inflows, the major driver behind rupee's appreciation, were absent in view of the global worries.

Data shows FIIs sold stocks worth Rs 283 crore on Tuesday. Indian stocks benchmark Sensex closed 157 points lower.

Moses Harding, head - ALCO and Economic & Market Research, IndusInd Bank said: "While there was genuine demand for dollars from importers, supply is not able to match the demand due to low capital flows."

On Monday, after the currency tumbled by 61 paise or 1.12 per cent, Reserve Bank of India (RBI) imposed restrictions of forward contracts by banks and arbitrage trading.

"Rupee also depreciated due to unwinding of positions today. Also, Monday's announcement by RBI has short-term negative impact," said T S Srinivasan, GM (Treasury), Indian Overseas Bank.

Finance minister Pranab Mukherjee in New Delhi said: "The government is taking a series of steps. However, managing rupee is market-related.... There is a lot of volatility.

"As and when RBI will consider necessary they will intervene. It depends on the market forces and market forces are uncertain," he said.

The dollar index, consisting of six major currencies, was up by nearly 0.4 per cent with investors looking ahead to a European Union leaders' meeting on Wednesday, as the bloc seeks to address the issue of Greece's possible exit from Eurozone.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "The ongoing gilts auction and other expected OMOs (open market operations) can help the rupee to recover from its lows but the chances are grim as there has been pressure from global weakness."

Other experts also expect rupee's weakness to continue.

"With the expectation of further weakness, the exporter won't be very keen to sell the dollars in the near term whereas importers and ECB holders, buyers' credit takers, are coming in the market and hedging their short dollar positions," said Abhishek Goenka, CEO, India Forex Advisors.

Moses Harding, Head - ALCO and Economic & Market Research, IndusInd Bank, expects rupee to gain after reaching 57-level.

"Looking forward, over the near-term, we expect the rupee to remain volatile as further sovereign measures can be anticipated but can be absorbed by a negative stream of news flow from the Eurozone," said Anindya Banerjee, senior manager - currency derivatives, Kotak Securities.

The rupee premium for the forward dollar on Tuesday ended steady to better on sustained paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in October finished at 156-1/2-158-1/2 paise from Monday's close of 156-158 paise while far-forward contracts maturing in April settled up at 284-286 paise from 280-282 paise.

The RBI fixed the reference rate for the US dollar at 54.8845 and for euro at 70.2093. The rupee declined further to 87.38 against the pound sterling from 87.00 previously and also remained weak against the euro to 70.68 from 70.25. However, it recovered against the Japanese yen to 69.36 per 100 from last close of 69.42.

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News Network
June 8,2020

New Delhi, June 8: Only 20.26 lakh migrant workers of the targeted 8 crore such labourers have received free food grains in May and June (2020), according to data released by the Ministry of Consumer Affairs, Food and Public Distribution.

In the middle of May, as part of the Rs 20 lakh crore Atma Nirbhar Bharat package, the Modi government had announced that migrant labourers who are not covered under the National Food Security Act (NFSA) or any state-run PDS scheme, will receive free food grains for two months.

"Non-card holders shall be given 5 kg wheat or rice per person and 1 kg chana per family per month for the next 2 months. About 8 crore migrants will benefit from this scheme that will cost the government Rs 3500 crore,” Finance Minister Nirmala Sitharaman had said at a press conference following PM Modi’s announcement.

But the Ministry of Consumer Affairs, Food and Public Distribution said on Sunday, "The states and UTs have lifted 4.42 LMT (lakh metric tonne) of food grains and distributed 10,131 MT of it to 20.26 lakh beneficiaries."

It added, "The Government of India also approved 39,000 MT pulses for 1.96 crore migrant families. Around 28,306 MT gram/dal have been dispatched to the states and UTs. A total 15,413 MT gram have been lifted by various states and UTs". The state governments, the ministry added, had distributed only 631MT (metric tonnes) of gram so far.

Because of the constant movement of migrant workers, the Centre had said that the states will be responsible for identifying the migrants and subsequent food distribution.

The Centre claims it is spending approximately Rs 3,109 crore for food grains and Rs 280 crores for grams/chana under this package.

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News Network
March 7,2020

Mumbai, Mar 7: Maharashtra Chief Minister and Shiv Sena president Uddhav Thackeray visited Ayodhya on Saturday to commemorate 100 days in office and pledged Rs 1 crore towards the building of the Ram Temple.

Taking a dig at BJP, Uddhav said his party had separated from its erstwhile ally but not Hindutva.

Recollecting the contribution of his father Balasaheb Thackeray, uddhav said he was forced to skip the Sarayu River 'aarti' due to Coronavirus fears but he would continue visiting Ayodhya.

Earlier in the day, the Sena, which heads the tripartite dispensation in the state, said there was no change in its ideology.

Launching a veiled attack on BJP, an editorial in the Sena mouthpiece 'Saamana' also said that Lord Ram and Hindutva is not the sole property of any single political party.

The Sena also said the Maha Vikas Aghadi (MVA) government — which also comprises the NCP and the Congress — has completed 100 days, much to the chagrin of those who were claiming that the new dispensation will not survive more than 100 hours.

“Those whose government lasted for 80 hours were claiming that the Thackeray regime will not last for even 100 hours. But this MVA government not only thrived but has instilled trust in the minds of people during this period with its performance,” the editorial said.

The Sena was apparently referring to the second inning of the erstwhile Devendra Fadnavis government which lasted for only 80 hours in November last year.

"Hence, CM Thackeray's visit to Ayodhya has to be welcomed as he is offering the flowers of works (done by the government) at the feet of Lord Shriram," it said.

The Sena said Thackeray's visit to the temple town is out of devotion for Lord Shriram. "The government in Maharashtra comprising three ideologically different parties is working as per Constitution and Thackeray is leading such government," it said.

The edit said on this background various questions were raised over Thackeray's visit to Ayodhya by his political opponents. "The government maybe backed by anyone, but Uddhav Thackeray and the Shiv Sena remain the same from within and outside. There is no change in the ideology. Lord Shriram and Hindutva is not the property of any single party," it stated.

Referring to senior RSS leader Suresh 'Bhaiyyaji' Joshi's remark that the Hindu community is not synonymous with the BJP and that opposing the BJP does not amount to opposing Hindus, the Sena said similarly Ayodhya belongs to all.

"The political and cultural battle in Ayodhya is now over. The Supreme Court cannot be thanked enough for this (for its verdict in the Ram Janmabhoomi-Babri Masjid dispute case that allowed construction of the Ram temple)," it said.

Hailing the Supreme Court's November, 2019 verdict, the Sena said the country had to fight a big battle to prove that Ayodhya belonged to Lord Shriram.

"In that battle, several (people) were unmasked. But only (late) Shiv Sena president Balasaheb Thackeray stood behind the Ayodhya (temple) campaigners like a mountain," it said.

Bal Thackeray created trust among Hindus from across the world about the creation of the temple, the Sena said. The party further said late Thackeray's assertion that he was proud if the Babri mosque was razed by Sena workers and that the temple of Lord Ram would come up in Ayodhya was akin to the thunder of "thousands of lightnings" in the sky.

"The Hindu culture got lit up in the glow of that lightning. The resplendent rays showed the path of power to the Hindu community. Hence, no one can deny the contribution of the 'Hinduhridaysamrat' (Bal Thackeray) as good as that of Lord Shriram, in creating the current political order in the country," the Sena said.

"We have experienced several times that Balasaheb lives in the mind of Ayodhya. Now Uddhav Thackeray himself is going there with the same faith. He had gone there when not in power. He is going there now after becoming chief minister with the same humility. Lord Shriram is of everyone," the Sena said.

The party said Maharashtra is being run on the path shown by Lord Shriram and Chhatrapati Shivaji Maharaj. "A Ram Rajya entails fulfilling promises made to the people. This is precisely what Mahatma Gandhi wanted, and the government following this ideology is in place in Maharashtra. It will continue work on that line. Ultimately, Lord Shriram is there to support it," the Sena said.

Thackeray completed 100 days in the office on Friday. He had assumed office as the chief minister of the Sena-led Maha Vikas Aghadi (MVA) government on November 28 last year, after the Sena joined hands with the NCP and the Congress.

Senior Sena leader Sanjay Raut had said that Thackeray will not take part in the 'aarti' programme on the banks of river Sarayu in the temple town.

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News Network
January 27,2020

Jan 27: Bidders for Air India Ltd. will need to absorb $3.26 billion of its debt, as Prime Minister Narendra Modi’s administration tries once again to sell the national carrier.

The entire company will be sold but effective control needs to stay with Indian nationals, according to preliminary terms published Monday. Bids are invited by March 17 with Ernst & Young LLP India as transaction adviser.

Air India, which started in 1932 as a mail carrier before winning commercial popularity, saw its fortunes fade with the emergence of cutthroat low-cost competition. The state-run airline has been unprofitable for over a decade and is saddled with more than $8 billion in debt.

Indian regulations allow a foreign airline to buy as much as 49% of a local carrier, while overseas investors other than airlines can buy an entire carrier. The government didn’t find a single bidder when it tried to sell Air India in 2018.

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