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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Agencies
August 3,2020

New Delhi, Aug 3: Congress leader and Rajya Sabha MP Digvijaya Singh on Monday said that Prime Minister Narendra Modi should defer the foundation stone laying ceremony for Ram temple from August 5 as it will be an "inauspicious hour" for the event.

"I request Modi Ji again that the inauspicious occasion of August 5 (for foundation stone laying ceremony for Ram temple) should be deferred. The construction of Ram temple is to begin after hundreds of years of struggle and PM Modi should leave his stubbornness that may cause an obstruction in the process," Digvijaya tweeted (translated from Hindi).

The Congress leader went on to claim that several BJP leaders were falling sick due to COVID-19 as the result of ignoring the norms of Sanatan Dharma. "The results of ignoring the norms of Sanatan Dharma are - all priests of Ram temple tested positive for COVID-19, death of UP Minister Kamal Rani Varun due to corona, UP BJP chief tested COVID-19 positive, Home Minister Amit Shah tested positive for COVID-19, Madhya Pradesh CM Shivraj Singh Chouhan tested positive for COVID-19, Karnataka CM Yediyurappa tested positive for COVID-19," he added.

"Lord Ram is the epicentre of faith for crores of Hindus and the PM should not play with norms and traditions of Sanatan Dharma established across thousands of years," he added.

The Congress leader further questioned the urgency of holding the foundation stone laying event in times when COVID-19 spread is prevalent across the country.

"By laying the foundation stone for Ram temple at an inauspicious hour, how many people do you want to send to the hospital Modi Ji? Yogi Ji, please explain to Modi Ji. In your presence, why are the norms and traditions of Sanatan Dharma being broken? What is your compulsion that you are allowing this to happen?" he contended.

"One more question arises. A minister of the Uttar Pradesh government died due to coronavirus. Union Home Minister tested positive for COVID-19 and Uttar Pradesh BJP chief also tested positive. In these circumstances, whether Uttar Pradesh Chief Minister and India's Prime Minister should not be quarantined? Is being quarantined only mandated for common people? Not for Prime Minister and Chief Ministers? The time limit for quarantine is 14 days," he added.

He further said that the entire cabinet should go into quarantine otherwise they will infect the residents of Ayodhya.

"These people's religion is 'Hindutva' and not 'Sanatan Dharma'. hence they have nothing to do with Sanatan Dharma's traditions. They have broken all the norms. Now, Modi Ji will issue the muhurta and he will only lay the foundation stone," he tweeted.

The Prime Minister is scheduled to lay the foundation stone of the Ram temple in Ayodhya on August 5.

The construction of Ram temple will begin after the ceremony to lay the foundation stone in which Chief Ministers of several states, Ministers from the Union Cabinet and RSS chief Mohan Bhagwat are also likely to participate.

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Agencies
July 20,2020

New Delhi, Jul 20: Reiterating that China has still occupied India's territory, Congress leader Rahul Gandhi on Monday attacked Prime Minister Narendra Modi saying that he has fabricated a fake strongman image to come to power which has now become India's biggest weakness as he has to protect the idea of 'Chhapan Inch'.

Taking to Twitter, the Congress leader posted a video message and wrote, "PM fabricated a fake strongman image to come to power. It was his biggest strength. It is now India's biggest weakness."

In the video message, speaking on "China's Strategic Game Plan" the Congress leader said: "What is China's strategic and tactical game plan? It is simply not a border issue. The worry I have is that the Chinese are sitting in our territory today. Chinese don't do anything without thinking about it strategically."

"In their mind, they have mapped out the world and they are trying to shape the world. That's the scale of what they are doing. That's what Gwadar is, that is what belt and road is. It is a restructuring of the planet. So when you are thinking about the Chinese you have to understand that that is the level at which they are thinking," he added.

Now at the tactical level, they're trying to improve their position. Whether it is Galwan, whether it's Demchok or whether it is Pangong Lake. The idea is to position themselves, he said.

"They are disturbed by our highway they want to make our highway redundant and if they are thinking larger scale, they want to do something with Pakistan in Kashmir. So it is not simply a border issue. It is a border issue designed to put pressure on the Prime Minister of India," the Congress leader said.

"And they are thinking of putting pressure in a very particular way. And what they are doing, is that they are attacking his image. They understand that it in order for Mr Narendra Modi to be an effective politician; in order for Mr Narendra Modi to survive as a politician, he has to protect the idea of--Chhapan Inch. And this the real idea the Chinese are attacking. They are basically telling Mr Narendra Modi that if you do not do what we say, we will destroy the idea of Mr Narendra Modi as a strong leader," he added.

Gandhi continued saying, now the question is, how will PM Narendra Modi react. Will he take them on? Will he take on the challenge and say absolutely not, I'm the Prime Minister of India. I do not care about my image I'm going to take you on. Or will he succumb to them?

"The worry I have so far is that the Prime Minister has succumbed. The worry I have is, the Chinese are sitting in our territory today and the Prime Minister has said publicly they are not, which to me tells me that is worried about his image and defending his image," said Gandhi.

"And if he allows the Chinese to understand that they can manipulate him because of his image, the Indian Prime Minister will no longer be worth anything for India," he added.

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News Network
July 26,2020

New Delhi, Jul 26: Nidan Singh Sachdeva, the Afghan Sikh who was kidnapped a month ago and released recently, arrived here earlier in the day and narrated the ordeals that he faced at the hands of abductors and also thanked the Indian government for bringing him back to his 'motherland'.

Facing threats from Pakistan-backed Taliban, eleven members of Sikh community from Afghanistan, who were granted short-term visas by Indian Embassy in Kabul, including Sachdeva, who was abducted from a gurudwara in Paktia province last month, touched down in New Delhi on Sunday afternoon.

Speaking to news agency on his return, an emotional Sachdeva, said, "I don't know what to call Hindustan -- whether it is my mother or my father -- Hindustan is Hindustan."

"I was abducted from the gurudwara and 20 hours later, I was covered with blood. I was tied to a tree as well. They used to beat me and ask me to convert into a Muslim. I repeatedly told them that why should I convert, I have my own religion," he said while describing
Nidan Singh thanked Government of India for bringing him here.

"I am more than thankful to the Indian government for bringing us here to our motherland. I have no words to describe my feelings here. I arrived here after much struggle. The atmosphere of fear prevails there.

Gurudwara is where we can be safe but a step outside the Gurdwara is fearful," he said.
"They used to beat me every day and every night," he said further and added, "It is because of sheer happiness, I am speechless. I am very grateful to them."

Ministry of External Affairs recently announced that India has decided to facilitate the return of Afghan Hindu and Sikh community members facing security threats in Afghanistan to India.
The decision comes four months after a terror attack at a gurdwara in Kabul's Shor Bazaar killed at least 25 members of the community.

India has condemned the "targeting and persecution" of minority community members by terrorists in Afghanistan at the behest of their external supporters remains a matter of grave concern.

Leaders of the Afghan Sikh community have appealed to the Indian government to accommodate the Sikhs and Hindus from Afghanistan and grant them legal entry with long term residency multiple entry visas.

Once a community of nearly 250,000 people, the Sikh and Hindu community in Afghanistan has endured years of discrimination and violence from extremists, and the community is now estimated to comprise fewer than 100 families across the country.

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