Rupee breaches 82 per US dollar for first time as Fed officials back rate hike view

News Network
October 7, 2022

The rupee weakened to a new low against the US dollar on Friday as Federal Reserve officials in the US outlined a large quantum of rate hikes going ahead, leading to a stronger greenback globally.

The rupee, which weakened past the 82 per dollar mark for the first time, was at 82.35 per dollar at 11:35 am IST. Its previous low was 81.95 per dollar.

The domestic currency, which has weakened 9.7 per cent versus the US dollar in 2022, had settled at 81.89 on Thursday.

The US dollar index, which measures the greenback against six major currencies, was last at 112.31 versus 111.35 at 3:30 pm IST on Thursday. On Thursday, Chicago Federal Reserve President Charles Evans said that the federal funds target rate is likely to rise to 4.50-4.75 per cent by the spring of 2023.

Following 300 bps of rate hikes by the Federal Reserve since March 2022, the federal funds target rate is currently at 3-3.25 per cent. Higher US interest rates lead to a stronger dollar and erode the appeal of emerging market currencies such as the rupee. A 6 per cent rise in Brent crude prices so far this week following a reduction in output by the OPEC also dragged the rupee lower, dealers said.

“Rupee opens at a life time low of 82.21 with dollar index above 112 on the expectation that the Fed will continue on its aggressive tightening path to tame inflation gaining support from a strong US jobs data expected today,” said Ritesh Bhansali, vice-president, Mecklai Financial Services.

“U.S. non-farm payrolls are expected to increase to 275k in September, compared to 315k in August, and unemployment is predicted to be steady at 3.7%. Oil prices rose as OPEC+ agree to cut production by 2 million barrels per day (bpd), the largest reduction since 2020,” he said.

Advisors at CR Forex see the rupee in a band of 81.80-82.50 per dollar in coming days before breaking towards the 83 levels.

Dealers said that the Reserve Bank of India (RBI) is intervening in the market through dollar sales around the 82.30-82.35 per dollar mark in order to rein in the volatility in the rupee. However, the central bank is not seen selling dollars aggressively, given the scale of dollar’s global strength.

As on September 23, the RBI’s foreign exchange reserves were at a two-year low of $537.52 billion. The reserves were at $631.53 billion as on February 25, which was when Russia invaded Ukraine.

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News Network
November 12,2024

ikramuddinkamil.jpg

The Taliban regime has appointed Ikramuddin Kamil as the acting consul in the Afghan mission in Mumbai, Afghan media has reported.

It is the first such appointment made by the Taliban set up to any Afghan mission in India.

There was no immediate comment from the Indian side on the appointment that came.

The Ministry of Foreign Affairs of Afghanistan has announced the appointment of Kamil as the acting consul in Mumbai, the Taliban-controlled Bakhtar News Agency reported on Monday, citing unnamed sources.

"He is currently in Mumbai, where he is fulfilling his duties as a diplomat representing the Islamic Emirate," it said.

The appointment is part of Kabul's efforts to strengthen diplomatic ties with India and enhance its presence abroad, the media outlet said

Kamil holds a PhD degree in international law and previously served as the deputy director in the department of security cooperation and border affairs in the foreign ministry, it said.

He is expected to facilitate consular services and represent the interests of Afghanistan in India, the report added.

Kamil's appointment comes days after the external affairs ministry's point-person for Afghanistan held talks with the Taliban's acting defence minister, Mullah Mohammad Yaqoob, in Kabul.

Sher Mohammad Abbas Stanikzai, the Taliban's deputy foreign minister for political affairs, also posted on X about Kamil's appointment.

The appointment of Kamil is seen as part of efforts to facilitate consular services to the Afghan population in Mumbai.

There has been almost negligible presence of diplomatic staff at the Afghan missions in India.

Most of the diplomats appointed by the Ashraf Ghani government have already left India.

In May, Zakia Wardak, the seniormost Afghan diplomat in India, resigned from her position after reports emerged that she was caught at the Mumbai airport for allegedly trying to smuggle 25 kg of gold worth Rs 18.6 crore from Dubai.

Wardak had taken charge as the acting ambassador of Afghanistan to New Delhi late last year, after working as the Afghan consul general in Mumbai for more than two years.

She took charge of the Afghan embassy in New Delhi last November, after the mission helmed by then ambassador Farid Mamundzay announced its closure.

Mamundzay, who was an appointee of the Ghani government, had moved to the United Kingdom.

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News Network
November 15,2024

Udupi: The Tourism Department is planning a major eco-friendly development initiative for Kamini Island, located near the Blue Flag-certified Padubidri End Point beach, aiming to attract more visitors while maintaining environmental sustainability.

Assistant Director Kumar CU emphasized that, given the island’s proximity to the Blue Flag beach, all development efforts will center around eco-friendly practices. “We are looking to enhance the Kamini River and the island’s surroundings by adding a hanging bridge, nature trails, and eco-friendly food courts offering traditional cuisine. Visitors will also be able to reach the island by pedal boats or kayaking,” he said.

The development project is estimated to cost between Rs 3 crore and Rs 4 crore. Meanwhile, the Blue Flag beach, Padubidri, continues to see a steady flow of visitors. Vijay Shetty, manager of the beach, shared that tenders for food courts and water sports have been awarded to private parties. Recently, three new coracles have been introduced, which are proving to be a hit with visitors. Additionally, three more shelters are expected to be ready by November 20.

Shetty mentioned that the beach can now accommodate between 2,500 and 3,000 visitors daily, although footfall remains lower than other district beaches due to user fees and activity restrictions. “Initially, most visitors were from Mangaluru, but now nearly 40% come from other districts, showing a shift in the visitor demographics,” Shetty noted.

To further boost tourism and promote a healthy lifestyle, a Beach Carnival is set to take place on November 23-24, featuring the National Sea Swimming Championship and a sea marathon in collaboration with the Padubidri JCI, which is celebrating its golden jubilee. Cultural events will be held at the main beach, with some sports events taking place at the Blue Flag beach. Emphasis will be placed on making all activities environmentally friendly.

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News Network
November 14,2024

Bengaluru: Karnataka Deputy Chief Minister D K Shivakumar on Thursday backed Chief Minister Siddaramaiah over his claim that the BJP had offered Rs 50 crore each to 50 Congress MLAs in an attempt to "topple" the state government.

Addressing reporters here, Shivakumar, also the Congress state president, said, “The BJP indeed lured 50 Congress MLAs with Rs 50 crore each.”

He defended Siddaramaiah’s statement and said the Congress MLAs were briefed about the BJP’s alleged 'Operation Lotus', a term used to describe the BJP's attempts to destabilise ruling governments through horse-trading.

“Some of our MLAs informed the Chief Minister about this matter, and he, in turn, shared it with the media,” Shivakumar said.

At an event in Mysuru, Siddaramaiah reiterated the claim that "none of the Congress MLAs had accepted the offer".

He also accused the BJP of filing false cases against him in a bid to "remove him and overthrow his government".

The BJP has yet to respond to the allegations.

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