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RBI’s new policy plunges rupee to new low of over 74 to USD (Lead)
Mumbai, Oct 5 (IANS) The Indian rupee plunged to a record low of over 74 to a US dollar on Friday, after the Reserve Bank of India changed the policy stance to “calibrated tightening”.
In addition, a massive outflow of foreign funds along with high crude oil prices and fears over fiscal slippage led to the rupee’s downward trajectory. However, a likely intervention by the country’s central bank aided in the Indian currency’s recovery.
The Indian rupee closed at 73.77 (73.7675) per US dollar, 19 paise weaker from its previous close of 73.58.
It opened the day’s trade at the Inter-Bank Foreign Exchange Market at 73.64 (73.6375) and just after the RBI announced its decision, plunged to over 74 a US dollar — the lowest ever mark — it has touched against the greenback.
“Dollar-Rupee was once again saved by an alleged intervention from RBI. It closed 73.76 after making a high of 74.22 an intra-day all time high,” said Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities.
“No rate hike but hawkish stance triggered a sell off in equities and that caused rupee to depreciate. Near term range is 73.50-74.50.”
On Friday, the RBI belied market expectations of a rate hike. However, the “neutral” stance of monetary policy was changed to “calibrated tightening” which triggered a massive sell-off in the equities market.
In terms of foreign funds, provisional data with the exchanges showed that foreign institutional investors sold stocks worth Rs 3,370.14 crore.
“The rupee has extended losses today as the RBI monetary policy meeting has clearly disappointed the street,” Rushabh Maru, Research Analyst at Anand Rathi Shares and Stock Brokers said.
“Market was expecting at least 25 basis points repo rate hike and measures to stabilise the rupee. But the status quo in the policy has disappointed. Given the sell-off in the domestic equities and higher crude oil prices, the rupee is now expected to move towards 75-76 levels in next couple of sessions.”
According to Madhavi Arora, Economist, FX and Rates, Edelweiss Securities said: “The RBI is clearly of the view that they should let underlying trade competitiveness improve gradually as the trade-weighted exchange rate acts as a natural stabiliser.
“The currency objective has again been reiterated as managing the FX volatility and not managing any levels.”
–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.