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
May 15,2020

New Delhi, May 15: Union Health Minister Harsh Vardhan has appealed to all states and Union Territories to ban the sale of smokeless tobacco products and spitting in public places in line with the orders of the Rajasthan and Jharkhand governments to prevent the spread of coronavirus infection.

In a letter to all state health ministers, Vardhan said smokeless tobacco users have a tendency to spit in public places or otherwise and therefore, increase health risks especially those of spreading contagious diseases like COVID-19, tuberculosis, swine flu, encephalitis and others.

"Use of smokeless tobacco also creates an unhygienic environment which further spreads the diseases. The large gathering at the retail outlets where smokeless tobacco products are sold, also pose the risk of spread of COVID-19," he said.

In the letter dated May 11, the Union minister underlined that tobacco use is a major threat to public health globally. He also mentioned the Indian Council of Medical Research's (ICMR) appeal to the public not to consume and spit smokeless tobacco products in public places.

Chewing tobacco products and areca nut increases the production of saliva followed by a very strong urge to spit. Spitting in public places could enhance the spread of the COVID-19, Vardhan said.

"By banning spitting in public places, states and UTs can help in achieving not only Swachh Bharat but also Swasth Bharat (Clean India and Healthy India)," he said.

Vardhan also mentioned the May 1 guidelines issued by the Union Home Ministry under the National Disaster Management Act, 2005, which stipulate that "spitting in public places shall be punishable with fine as may be prescribed by the state/UT local authority and consumption of liquor, pan, gutkha, tobacco etc in public places is not allowed".

Appreciating the efforts of Rajasthan and Jharkhand in this direction, the Union Health Minister urged all states to take similar measures and create widespread awareness regarding the harm of spitting in public places.

The Rajasthan government had by an ordinance banned spinning in public places and sale of paan, gutka and tobacco in the wake of the coronavirus outbreak. The Jharkhand too has imposed a complete ban on all types of tobacco products to prevent spitting in public places that could increase the spread of coronavirus infection.

"I am happy to note that the governments of Jharkhand and Rajasthan have already completely banned the sale of tobacco products and spitting in public places. Therefore, I urge upon you to take similar measures and also create widespread awareness in your state/ UT regarding harms of spitting in public places.

"It is also requested that the directions of Ministry of Home Affairs in this regard may be implemented scrupulously and effectively," Vardhan said in the letter.

Tobacco smoking is a known risk factor for many respiratory infections and increases the severity of related diseases. A review of studies by public health experts convened by WHO on April 29 found that smokers are more likely to develop severe diseases, compared to non-smokers, said Binoy Mathew, senior programme officer of Voluntary Health Association of India.

It is one of the main risk factors for a number of chronic ailments, including cancer, lung and cardiovascular diseases, he said, adding that according to the Global Adult Tobacco Survey, with 268 million or 28.6 per cent of all adults in India, the country has the second largest number of tobacco users in the world.

At least 12 lakh die from tobacco-related diseases every year, Mathew said.

Those keen to quit smoking and smokeless products can avail of free of charge telephone-based services launched by the government. The Ministry of Health has set up a National Tobacco Quit Line Services to provide counselling services to help tobacco consumers quit the habit.

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News Network
June 20,2020

New Delhi, Jun 20: The government-imposed upper and lower limits on airfares may be extended beyond August 24 depending upon how the situation turns out, Aviation Secretary P S Kharola said on Saturday.

The government resumed domestic passenger flights from May 25 after nearly two months of suspension to combat the coronavirus outbreak, but placed lower and upper limits on airfares depending upon the flight duration.

It had said on May 21 that these limits would be in place for a period of three months.

"Depending on how the situation turns out, the fare band may have to adjusted beyond that (August 24) also. But right now, it is only for three months," Kharola said at a press conference here.

International passenger flights continue to remain suspended in the country.

However, the government started Vande Bharat Mission on May 6 to help stranded people reach their destinations through special flights.

Aviation Minister Hardeep Singh Puri said at the conference that during phase 3 and phase 4 of the mission, private domestic airlines have been approved to operate 750 international flights to repatriate people stranded amid the coronavirus pandemic.

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News Network
May 27,2020

New Delhi, May 27: Professor Johan Giesecke of the Karolinska Institute, Sweden, on Wednesday claimed that India will ruin its economy very quickly if it had a severe lockdown.

Claiming that a strict lockdown may disrupt India's economic growth, Giesecke during an interaction with Congress leader Rahul Gandhi said: "In India, you will do more harm than good with strict lockdown measures. India will ruin its economy very quickly if it had a severe lockdown."

While calling for a soft lockdown approach in India, he suggested that India has to ease restrictions one by one. It may, however, take months to completely come out of lockdown, he said.

He further criticised countries across the globe for having no post-lockdown strategy.

Emphasising on the disease, the Swedish health expert said that coronavirus is spreading like a wildfire across the world. "It is a very mild disease. Ninety-nine per cent infected people will have very less or no symptoms," he added.

Meanwhile, Ashish Jha, Director Harvard Global Health Institute and a recognised public health official, in interaction with Gandhi, called for a need to go in for an 'aggressive' COVID-19 testing to create confidence among people.

"When the economy is opened post-lockdown, you have to create confidence. There is a need for aggressive testing strategy in high-risk areas," he said.

He asserted that COVID-19 is not the last pandemic in the world, adding that "We are entering the age of large pandemics".

Jha further said that countries like South Korea, Taiwan and Hong Kong have responded the best to COVID-19 pandemic, while Italy, Spain, the US and the UK have responded the worst.

A few days ago, the Gandhi scion had interacted with former Reserve Bank of India Governor Raghuram Rajan and Nobel Prize Winner Abhijit Banerjee to discuss various issues related to the COVID-19 crisis.

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