Indian rupee breaches 72 to the dollar to hit new low

The Indian rupee has fallen nearly 2 percent this month and more than 12 percent this year. (AP)
Updated 06 September 2018
0

Indian rupee breaches 72 to the dollar to hit new low

MUMBAI: The Indian rupee breached the 72 to the dollar mark for the first time on Thursday, extending losses as a rout in emerging markets kept investors on edge.
The rupee fell to a record low of 72.11 to the dollar at one point, but pared the day’s losses after mild selling of dollars likely by the Reserve Bank of India, dealers said.
At 0829 GMT, the rupee was trading at 71.9350 to the dollar compared with its previous close of 71.7750.
“This is not intervention, it is just mild selling (of dollars) to smoothen out the volatility and not to protect any level anymore,” said a senior forex analyst at a state-run bank.
The rupee has fallen nearly 2 percent this month and more than 12 percent this year, making it Asia’s worst performing currency.
Dealers estimate the RBI on Thursday to have sold about $1 billion, which they said is not much given the pace of the rupee’s fall.
The RBI anonymously intervenes in the forex market through banks, and publishes its forex reserves numbers with a week’s time lag. Typically, traders can only estimate the intervention number from the weekly data.
While the sharp fall in the rupee and the RBI’s light-handed approach in the forex market have surprised several traders, government officials have not shown much concern about the currency’s rapid depreciation.
Finance Minister Arun Jaitley said late on Wednesday there was no need for a panicked reaction to the rupee’s fall while the commerce secretary, Anup Wadhawan, said the slide was due to global developments and was helping India’s exports, which rose 14.32 percent in July to $25.77 billion from a year earlier.
“It is quite puzzling to the markets what the government and RBI want on the rupee, and why the government is sending out such signals that they are not worried about the rupee,” said a forex trader at a state-run bank.
The next Fibonacci technical level for the rupee will be 72.50-72.80 to the dollar, the forex analyst said.


Abu Dhabi aims to lure start-ups with investment in new technology hub

Updated 24 March 2019
0

Abu Dhabi aims to lure start-ups with investment in new technology hub

  • The initiative will help Abu Dhabi reduce reliance on oil
  • Mubadala hopes to attract Chinese and Indian companies

ABU DHABI: Abu Dhabi will commit up to $272 million to support technology start-ups, it said on Sunday, in a dedicated hub as part of efforts to diversify its economy.

US tech giant Microsoft will be a strategic partner, providing technology and cloud services to the businesses that join the hub as the capital of the United Arab Emirates continues its push to reduce reliance on oil revenue.
Abu Dhabi derives about 50 percent of its real gross domestic product and about 90 percent of central government revenue from the hydrocarbon sector, according to ratings agency S&P.
The emirate launched a $13.6 billion stimulus fund, Ghadan 21, in September last year to accelerate economic growth. Ghadan means tomorrow in Arabic. The new initiative, named Hub 71, is linked to Ghadan will also involve the launch of a $136 million fund to invest in start-ups, said Ibrahim Ajami, head of Mubadala Ventures, the technology arm of Mubadala Investment Co.
The goal is to have 100 companies over the next three to five years, Ajami said. “The market opportunities in this region are immense,” he added.
Mubadala, with assets of $225 billion and a big investor in tech companies, will act as the driver of the hub, located in the emirate’s financial district.
Softbank will be active in the hub and support the expansion of companies in which it has invested, Ajami said, adding that Mubadala is also aiming to attract Chinese and Indian companies, among others.
Mubadala which has committed $15 billion to the Softbank Vision Fund, plans to launch a $400 million fund to invest in leading European technology companies.
Incentives mapped out by the government include housing, office space and health insurance as part of the $272 million commitment, Ajami said.
Abu Dhabi will also announce a new research and development initiative on Monday linked to the Ghadan 21 plan, according to an invitation sent to journalists.