Rupee Slips 28 Paise to 71.88 against USD in Early Trade amid Rising Demand for Dollar after Saudi Oil Attacks

Agencies
September 17, 2019

Mumbai, Sept 17: The rupee opened on a cautious note and fell 28 paise to 71.88 against the US dollar in early trade on Tuesday amid rising demand for the US dollar vis-a-vis other currencies overseas.

Forex traders said the drone attacks on Saudi Arabia's oil facilities have enthused demand for safe heaven assets like the US dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.01 per cent to 98.61.

The Indian rupee on Monday had plunged by 68 paise to 71.60 against the US dollar amid concerns over soaring crude prices following drone attacks on Saudi Arabia's oil facilities.

At the Interbank Foreign Exchange, the rupee opened at 71.83 then fell to 71.88 against the US dollar, showing a decline of 28 paise over its previous closing.

The Indian rupee on Monday had closed at 71.60 against the US dollar.

Forex traders said weak opening in domestic equities and unabated foreign fund outflows also weighed on the domestic currency.

Domestic bourses opened on a negative note on Tuesday with benchmark indices Sensex trading 137.87 points down at 36,985.44 and Nifty lower by 38.85 points at 10,964.65.

Foreign institutional investors (FIIs), who were net buyers for the past few sessions, offloaded shares worth Rs 751.26 crore on Monday, according to provisional exchange data.

"The recent attack on Saudi Arabia's largest oil processing plant has sent oil prices shooting up. If production is not resumed soon, such a rise could hurt the global economy as consumer costs will also go up. This will definitely affect India, where the economy is already stressed," said Pushkar Mukewar, Co-Founder and Co-CEO of Drip Capital, a US & India based trade finance firm.

Mukewar further said that the rupee is likely to remain volatile.

Crude oil benchmark, Brent Futures, surged by almost 20 per cent to USD 71.95 per barrel (intra-day) on Monday after twin drone attacks on Saturday wiped out more than half of Saudi Arabia's crude supply.

However, Brent Futures on Tuesday saw some moderation and was trading at USD 68.35 per barrel, down 0.97 per cent over the previous close.

The 10-year government bond yield was at 6.71 per cent in morning trade.

Meanwhile on the global front, a Chinese vice finance minister will visit the United States on Wednesday to lay the groundwork for trade talks next month.

The official Xinhua news agency said vice finance minister Liao Min will lead a delegation visiting the United States on Wednesday to "pave the way" for the higher level talks.

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News Network
May 30,2020

Coronavirus lockdown in India has been extended till June 30 with more relaxations.

While the lockdown has been extended in containment zones, relaxations outside containment zones include reopening of religious places for public  from June 8. 

Hotels, restaurants and shopping malls also to open from June 8. Decision on opening educational institutions to be taken in July.
 

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News Network
July 23,2020

New Delhi, Jul 23: A Delhi court Thursday allowed 198 Indonesians to walk free on payment of varying fines, after they accepted mild charges under the plea bargain process, related to various violations including visa norms while attending the Tablighi Jamaat event here during the COVID-19 lockdown.

Metropolitan Magistrate Vasundhara Azad allowed 100 Indonesians to walk free on payment of a fine of Rs 7,000 each, said advocates Ashima Mandla, Fahim Khan and Ahmed Khan, appearing for them.

Metropolitan Magistrate Swati Sharma allowed 98 Indonesians to walk free on payment of a fine of Rs 5,000 each.

The court directed the 98 Indonesians to deposit their fines to PM CARES Fund.

The Sub-divisional magistrate of Defence Colony, who was the complainant in the case, Assistant Commissioner of Police of Lajpat Nagar and Inspector of Nizamuddin said they have no objection to it.

However, one Indonesian did not plead guilty to the charges against them and claimed trial before the court.

Under plea bargaining, the accused plead guilty to the offence praying for a lesser punishment. The Criminal Procedure of Code allows for plea bargaining in cases where the maximum punishment is 7-year imprisonment; offences don''t affect the socio-economic conditions of the society and the offence is not committed against a woman or a child below 14 years.

The foreigners were chargesheeted for attending the religious congregation at Nizamuddin Markaz event in the national capital by allegedly violating visa conditions, indulging in missionary activities illegally and violating government guidelines, issued in the wake of Covid-19 outbreak in the country.

They were granted bail earlier by the court on a personal bond of Rs 10,000 each.

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News Network
August 8,2020

The Kozhikode International Airport located at Karipur is not safe for the landing of flights in rainy season, according to an air-safety expert, who had warned the aviation ministry and the civil aviation regulator about this in 2011. 

The warning was particularly about the dangers of permitting passenger aircraft to land on runway 10 of the airport during rains and unfavourable wind conditions. 

Nine years later, on August 7, 2020, the warning became a reality when an Air India Express pilots landed in tailwind conditions and the aircraft overshot the tabletop runway to drop off the end and crash.

 “An aircraft landing on runway 10 in tailwind will experience poor braking action due to heavy rubber deposits … All such flights … are endangering the lives of all on board,’’ said Capt Mohan Ranganathan, in a letter sent on June 17, 2011 to then director general of civil aviation Bharat Bhushan and Nasim Zaidi, chairman of a civil aviation safety advisory committee, which was formed after the May 2010 Mangaluru air crash which killed 158 people.

“My warning issued after the Mangaluru crash was ignored. It is a table-top runway with a down slope. The buffer zone at the end of the runway is inadequate,” Capt Ranganathan said. Given the topography, he pointed out, the airport should have a buffer of 240m at the end of the runway, but it only has 90m (which the DGCA had approved). “Moreover, the space on either side of the runway is only 75m instead of the mandatory 100m,” he added.

Capt Ranganathan said there is no guideline for operations on a table-top runway when it is raining. “Runway 10 approach should not be permitted in view of the lack of runway end safety area (RESA) and the terrain beyond the end of the runway. RESA of 240m should be immediately introduced and runway length has to be reduced to make the operations safe,” his letter said.

If an aircraft is unable to stop within the runway, there is no RESA beyond the end. The ILS localiser antenna is housed on a concrete structure and the area beyond is a steep slope. “The Air India Express accident in Mangalore should have alerted AAI to make the runway conditions safe. We have brought up the issue of RESA during the initial Casac-sub group meetings. We had specifically mentioned that the declared distances for both runways have to be reduced in order to comply with ICAO Annex 14 requirement,” Capt Ranganathan said.

He said the condition of the runway strip was known to DGCA teams that have been conducting inspection and safety assessments. “Have they considered the danger involved? Did the DGCA or the airlines lay down any operational restrictions or special procedures?”

The letter also refers to Approach and Landing Accident Reduction (ALAR) training, which is supposed to be mandatory before every monsoon, but airlines don’t follow it, he said. “70% of accidents take place during approach and landing and that is why this training is essential,” he added.

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