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Karnataka poll result, rising oil prices plunge rupee to below 68-mark
Mumbai, May 15 (IANS) Uncertainty over the government formation in Karnataka, along with high global crude oil prices and consistent outflow of foreign funds from the domestic equity market weakened the Indian rupee to a 15-month low on Tuesday.
The Indian rupee went down by 56 paise to close at 68.08 against the US dollar from its previous close at 67.52 per greenback.
“Inspite of BJP winning the election in Karnataka, concerns about their ability to form the government there has affected sentiments in rupee,” Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities told IANS.
Besides the state election results, Banerjee pointed out that even the high Indian bond yields due to worsening inflation outlook has weakened the Indian rupee. He predicted the rupee to be in a near term range of 67.70 to 68.50 on the spot market.
Lately, the Indian rupee has been one of the worst performing currencies in the EM (emerging markets) basket due to high crude oil cost.
Geo-political tensions in the Middle East and supply side constraints have led to a surge in global oil prices. The latest Brent crude price hovered around the $80 per barrel mark, whereas its cost was over $51 a barrel during the same period of 2017.
The price of the Indian basket of crude oils, composed of 70 per cent sour grade Oman and Dubai crudes and the rest by sweet grade Brent, has gone upwards of $70 a barrel last month.
According to Deloitte India’s Senior Director and Senior Economist Richa Gupta, the rupee “is facing downside risks on account of crude price hike, concerns regarding fiscal deficit and current account deficit, and dollar strength.”
“In the period ahead, these are the factors that may likely keep rupee to 67-70 levels. Generally, rupee depreciation can be expected to boost exports, all the more because in real terms, the rupee was over valued as compared to some of India’s key export competitors,” Gupta said.
“However if the outward shipments fail to take off at the desired levels and with imports bill inflating, continued depreciation may put further pressure on the twin deficits.”
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.