Rupee at record-low despite India spending $100 billion to defend currency

News Network
September 23, 2022

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New Delhi, Sept 23: India has spent nearly $100 billion in the past year to defend the rupee in a battle that has so far failed to staunch the local currency’s drop to a record low against the dollar on Friday.

Data from the Reserve Bank of India (RBI) showed that the country’s forex reserves have fallen to $545.7 billion as of September 16, from $550.8 billion a week ago, and a far cry from the $642.45 billion seen exactly a year ago. The reading is the lowest since October 2, 2020. 

To be sure, some of the drop is also due to revaluation changes, given the dollar’s move upwards. 

“The fall in reserves is a combination of factors such as intervention, balance of payments deficit, and the revaluation of reserves held in other currencies vis-a-vis the US dollar,” said Aditi Nayar, chief economist at ICRA in New Delhi. 

India’s currency fell to a record low 81 a dollar and has lost over 8 per cent so far this year against the greenback. The dollar has surged to a two-decade high against major currencies after the Federal Reserve signaled a longer-than-expected tightening cycle. 

The data comes as RBI has mounted a strong defense in the last few weeks to soothe market fears over further currency losses. The decline in the rupee is also raising worries with impact seen on inflation, external deficits and company profits. 

“You buy an umbrella to use it when it rains,” RBI Governor Shaktikanta Das said earlier in July, indicating that the central bank had been using foreign exchange reserves to deal with currency volatility.

While India’s forex buffer should be sufficient to shield the economy against any major external shock, we expect the RBI to become more prudent in the latter part of the current fiscal year, Kotak Mahindra Bank economists lead by Upasna Bhardwaj wrote in a note. 

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Agencies
March 28,2025

Udupi: Deputy Commissioner K. Vidya Kumari has directed officials to expedite land acquisition for designated industrial zones in the district to facilitate new industries. She issued these instructions during a meeting at Rajatadri on Wednesday.

Lands have been identified across various taluks for industrial development. The DC emphasized that KIADB must acquire these lands and ensure essential infrastructure—electricity, roads, and drainage—to attract industries and generate employment.

A total of 77 acres of private land has been acquired and compensated, including 31.2 acres in Kerebettu village, Hebri taluk, and 45.7 acres in Shivapura village. However, approval for 36.5 acres of government land is still pending. She instructed the forest department to assess whether this land falls under an eco-sensitive zone.

For the Belapu Industrial Area, the DC urged officials to accelerate minor land acquisitions for road expansion and commence construction at the earliest. She also mandated rainwater harvesting systems for all units in the Miyaru Industrial Area to tackle water scarcity.

Currently, 22 export-based units operate in the district. The DC encouraged further promotion of exports and an increase in their number.

The meeting was attended by Joint Director of Industries Nagraj V. Naik, KIADB Development Officer Srinivasa Murthy, Small-Scale Industries Association District President Harish Kunder, Deputy Director of the District Industrial Center Seetharam Shetty, District Skill Development Officer Arun B., and others.

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News Network
March 30,2025

Eid al-Fitr 2025 was marked with grand celebrations across the Middle East, as millions of Muslims came together to pray, feast, and rejoice. However, amid the festivities in Saudi Arabia, the UAE, Qatar, and Kuwait, Gaza stood in mourning. The ongoing conflict and devastation in Palestine turned what is usually a time of joy into a period of sorrow and survival for many Palestinians. While some regions witnessed fireworks and public gatherings, Gaza endured airstrikes, hunger, and loss, painting a stark contrast to the celebrations elsewhere.

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Muslims attend mass Eid al-Fitr prayers marking the end of the holy fasting month of Ramadan in Dubai, United Arab Emirates, Sunday, March 30, 2025

Gaza: Eid Amid Destruction and Mourning

In Gaza, the usual festive spirit of Eid was shattered by grief and destruction. Israeli airstrikes claimed the lives of several civilians, including women and children, leaving families mourning rather than rejoicing.

The usually vibrant markets of Gaza, once filled with people buying sweets and new clothes for Eid, remained eerily silent. Many families had no food to prepare the traditional celebratory meals, as ongoing blockades and supply shortages have left residents struggling for survival.

President Mahmoud Abbas declared that this year's Eid celebrations should be limited to religious observances, acknowledging the suffering of the people. In place of festivities, prayers were held for the victims of the war, and aid organizations worked tirelessly to distribute basic necessities to displaced families.

Saudi Arabia: Grand Celebrations Despite Regional Tensions

In stark contrast, Saudi Arabia witnessed grand celebrations with large-scale public events, concerts, and fireworks. The General Entertainment Authority (GEA) organized festivities across Riyadh, Jeddah, and other major cities. The night skies were illuminated with dazzling fireworks in places such as Boulevard World (Riyadh), Jeddah Art Promenade, and Al-Khobar Corniche.

Despite the revelry, many Saudi citizens expressed solidarity with Palestinians, with social media campaigns and fundraising efforts aiming to support those suffering in Gaza.

United Arab Emirates: A Festival of Luxury and Giving

The UAE celebrated Eid al-Fitr with traditional prayers, family gatherings, and a wide range of entertainment events. Dubai and Abu Dhabi hosted special cultural performances, and malls offered discounts and attractions for families.

However, amidst the celebrations, many mosques in the UAE emphasized the importance of charity, urging people to contribute to humanitarian efforts in Gaza and other conflict zones.

Qatar: A Blend of Joy and Concern

Qatar marked the beginning of Eid on March 30, 2025, with three days of public holidays and an extended break for government employees. Doha’s Corniche and Katara Cultural Village became focal points for celebrations, with thousands gathering to enjoy fireworks and live performances.

Nevertheless, Qatari authorities and charities continued their relief efforts for Palestine, highlighting the contrast between the joyous Eid atmosphere at home and the suffering of their fellow Muslims in Gaza.

Kuwait: Extended Holidays and Reflection

In Kuwait, Eid holidays provided a nine-day break for many employees, allowing families to come together in celebration. Traditional meals and prayers remained central to the festivities, but Kuwaiti media and religious leaders also focused on the plight of Palestinians, urging the public to donate and raise awareness.

A Tale of Two Realities

Eid al-Fitr 2025 presented a stark contrast between different parts of the Muslim world. While countries like Saudi Arabia, the UAE, Qatar, and Kuwait indulged in celebrations, Gaza stood in ruins, mourning its dead and struggling to find basic resources.

The divide between those celebrating and those suffering was more evident than ever, making this Eid a time of reflection for many Muslims worldwide. The call for peace and justice in Palestine echoed throughout sermons and speeches, reminding the world that while the spirit of Eid is about joy and gratitude, it is also about unity, compassion, and standing with those in need.

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News Network
April 4,2025

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Israel has announced the launch of a new ground onslaught in Gaza City, with rescuers saying military aggression has killed at least 30 people across the Palestinian territory since dawn.

In Gaza City, the Israeli military said ground troops had begun pushing into the Shejaiya neighborhood to expand the so-called "security zone" there, claiming that civilians had been allowed to evacuate the area. 

Initial reports, however, said a Palestinian woman and her daughter were just killed in an Israeli artillery shelling on displaced people in Shejaiya.

Gaza's civil defense agency said Israeli military aggression had killed at least 30 people in the Palestinian territory since dawn, adding that the toll was "not final".

A single Israeli strike on Khan Yunis killed at least 25 people, a medical source at the southern city's Nasser Hospital said. 

"The situation is very dangerous, and there is death coming at us from every direction," Elena Halas told AFP reportedly via text message, adding that she and her family were trapped in her sister's house in Shejaiya.

Israel has pushed since the collapse of a short-lived truce in the war to seize territory in Gaza. Simultaneously, it has escalated attacks on Lebanon and Syria, with a strike in the south Lebanese city of Sidon killing a Hamas commander along with his son on Friday. 

Minister of military affairs Israel Katz had said on Wednesday that Israel would bolster its military presence inside the Gaza Strip to "seize large areas that will be incorporated into Israeli security zones", without specifying how much territory.

Prime minister Benjamin Netanyahu said the military was dividing Gaza and "seizing territory" to force Hamas to free the remaining captives seized in the October 2023 operation inside southern settlements. 

Netanyahu has said his regime is working closely with the US to implement President Donald Trump's plan to displace Gazans.

Latest air raids have targeted Gaza City, as well as Beit Lahia, Rafah, and Khan Yunis, killing dozens of people and injuring several others.

On Thursday, hundreds of thousands of fleeing Gazans sought shelter in one of the biggest mass displacements of the war, as Israeli forces advanced into the ruins of the city of Rafah. 

A day after declaring their intention to capture large swathes of the crowded territory, Israeli forces pushed into the city on Gaza's southern edge which had served as a last refuge for people fleeing other areas for much of the war.

The Ministry of Health in Gaza said on Thursday that 112 Palestinians were killed by Israeli airstrikes, with at least 70 of those deaths taking place in Gaza City, in the north of the strip. 

Gaza's civil defense agency said women and children were among the dead, while six people were still unaccounted for in the strike on Dar al-Arqam School in the al-Tuffah neighborhood, northeast of Gaza City, including a pregnant woman who was expecting twins. 

Beit Hanoun Mayor Mohammad Nazek Al-Kafarna was one of the victims of the Israeli strike that hit the school on Thursday.

The Health Ministry said on Thursday that 1,163 people have been killed in the Palestinian territory since Israel resumed intense bombing on March 18, bringing the overall death toll since the war began to 50,523.

The usurping entity accepted longstanding negotiation terms by the Hamas resistance group under a Gaza ceasefire, which began on January 19.

On March 18, however, Israel unilaterally broke the truce and resumed its relentless bombing of Gaza.

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