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

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.


Lufthansa to freeze hiring, cut costs over coronavirus

Updated 1 min 31 sec ago

Lufthansa to freeze hiring, cut costs over coronavirus

  • ‘All new hires ... will be reassessed, suspended or deferred’
  • Lufthansa has also slashed connections with Hong Kong in the face of reduced demand
FRANKFURT AM MAIN: German airline Lufthansa said Wednesday it would freeze new hires and use unpaid leave and additional short-time work to cut costs to help cushion the economic impact of the novel coronavirus.
“To counteract the economic impact of the coronavirus of the early stage,” the group, which also owns carriers Austrian and Swiss, said in a statement that “all new hires ... will be reassessed, suspended or deferred.”
Employees would be offered unpaid leave and more part-time work and the group would also seek to cut administrative costs, it said.
“It is not yet possible to estimate the expected impact ... on earnings,” the group said, adding that it would provide more details at its annual results press conference on March 19.
The Frankfurt-based group said 13 of its aircraft were grounded, after it canceled all flights to and from mainland China by its flagship airline, as well as Austrian and Swiss until March 28.
Lufthansa has also slashed connections with Hong Kong in the face of reduced demand “and additional frequency adjustments to and from Frankfurt, Munich and Zurich are planned,” it said.