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Flare-up in trade war, high crude prices to further impact rupee: Analysts
Mumbai, Sep 8 (IANS) Escalation in global trade protectionist measures, as well as high crude oil prices will continue to exert pressure on the Indian rupee, experts said on Saturday.
However, the Reserve Bank of India (RBI) is expected to intervene in the spot market via public sector banks to somewhat arrest any sharp decline in the rupee’s value beyond the 72 per US dollar-mark.
The apex bank is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit.
Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities said the Indian rupee is expected to be under pressure as the US dollar could rise after US jobs data “surprised positively”.
“At the same time, US President has hinted at fresh set of tariffs on China. Both these news can drive rupee lower. We expect a range of 71.60-72.60 on spot,” Banerjee told IANS.
According to Sajal Gupta, Head Forex and Rates, Edelweiss Securities: “If 72.10 is not breached due to RBI intervention it can go to 70.80. Else a swift movement to 73.50 is not ruled out.”
“So range shall be 71 to 72.80. Market needs a big action or news to reverse the trend… overnight US NFP data was strong and we expect a gap up opening around 72.10 on Monday.”
On the other hand, a lower current account deficit (CAD) as a per cent of GDP in the April-June quarter of 2018-19 might give some support to the Indian rupee.
“CAD as a percentage of GDP has declined a bit in April-June quarter. This might also support the rupee,” Rushabh Maru — Research Analyst at Anand Rathi Shares and Stock Brokers told IANS
“Focus will now shift to India IIP (Index of Industrial Production) and CPI (Consumer Price Index) data.”
India’s macro-economic inflation and industrial data points such as the CPI, wholesale price index (WPI) for August and IIP for July are scheduled to be released next week.
Apart from macro-data, any further outflow of foreign funds from the Indian equity and bond markets might have an adverse impact on the rupee.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 789.60 crore and the domestic institutional investors bought stocks worth Rs 1,167.85 crore in the past week.
Last trade week, the Indian rupee settled above 71 to a US dollar in the spot market. It closed at 71.73 on Friday after breaching its record low of 72.11 per US dollar on Thursday.
–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.