Rupee at record-low despite India spending $100 billion to defend currency

News Network
September 23, 2022

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New Delhi, Sept 23: India has spent nearly $100 billion in the past year to defend the rupee in a battle that has so far failed to staunch the local currency’s drop to a record low against the dollar on Friday.

Data from the Reserve Bank of India (RBI) showed that the country’s forex reserves have fallen to $545.7 billion as of September 16, from $550.8 billion a week ago, and a far cry from the $642.45 billion seen exactly a year ago. The reading is the lowest since October 2, 2020. 

To be sure, some of the drop is also due to revaluation changes, given the dollar’s move upwards. 

“The fall in reserves is a combination of factors such as intervention, balance of payments deficit, and the revaluation of reserves held in other currencies vis-a-vis the US dollar,” said Aditi Nayar, chief economist at ICRA in New Delhi. 

India’s currency fell to a record low 81 a dollar and has lost over 8 per cent so far this year against the greenback. The dollar has surged to a two-decade high against major currencies after the Federal Reserve signaled a longer-than-expected tightening cycle. 

The data comes as RBI has mounted a strong defense in the last few weeks to soothe market fears over further currency losses. The decline in the rupee is also raising worries with impact seen on inflation, external deficits and company profits. 

“You buy an umbrella to use it when it rains,” RBI Governor Shaktikanta Das said earlier in July, indicating that the central bank had been using foreign exchange reserves to deal with currency volatility.

While India’s forex buffer should be sufficient to shield the economy against any major external shock, we expect the RBI to become more prudent in the latter part of the current fiscal year, Kotak Mahindra Bank economists lead by Upasna Bhardwaj wrote in a note. 

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News Network
December 4,2025

Mangaluru: Chaos erupted at Mangaluru International Airport (MIA) after IndiGo flight 6E 5150, bound for Mumbai, was repeatedly delayed and ultimately cancelled, leaving around 100 passengers stranded overnight. The incident highlights the ongoing country-wide operational disruptions affecting the airline, largely due to the implementation of new Flight Duty Time Limitations (FDTL) norms for crew.

The flight was initially scheduled for 9:25 PM on Tuesday but was first postponed to 11:40 PM, then midnight, before being cancelled around 3:00 AM. Passengers expressed frustration over last-minute communication and the lack of clarity, with elderly and ailing travellers particularly affected. “Though the airline arranged food, there was no proper communication, leaving us confused,” said one family member.

An IndiGo executive at MIA cited the FDTL rules, designed to prevent pilot fatigue by limiting crew working hours, as the cause of the cancellation. While alternative arrangements, including hotel stays, were offered, about 100 passengers chose to remain at the airport, creating tension. A replacement flight was arranged but also faced delays due to the same constraints, finally departing for Mumbai around 1:45 PM on Wednesday. Passengers either flew, requested refunds, or postponed their travel.

The Mangaluru delay is part of a broader crisis for IndiGo. The airline has been forced to make “calibrated schedule adjustments”—a euphemism for widespread cancellations and delays—after stricter FDTL norms came into effect on November 1.

While an IndiGo spokesperson acknowledged unavoidable flight disruptions due to technology issues, operational requirements, and the updated crew rostering rules, the DGCA has intervened, summoning senior airline officials to explain the chaos and outline corrective measures.

The ripple effect has been felt across the country, with major hubs like Bengaluru and Mumbai reporting numerous cancellations. The Mangaluru incident underscores the systemic operational strain currently confronting India’s largest carrier, leaving passengers nationwide grappling with uncertainty and delays.

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News Network
November 27,2025

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Bengaluru: The Vokkaligara Sangha on Thursday issued a stern warning to the Congress, saying the party could face serious electoral repercussions if Deputy Chief Minister D.K. Shivakumar is not appointed as Chief Minister.

The warning follows the public backing of Shivakumar’s chief ministerial ambition by top Vokkaliga pontiff Nirmalanandanatha Swami, who urged the Congress high command to honor his claim.

“The community supported Congress in the 2023 Assembly elections only because Shivakumar had a real chance to become CM. If he is cheated, we’ll teach the party a big lesson,” said newly elected Sangha president L. Srinivas. He added that Vokkaligas would organize protests under the guidance of community leaders.

General Secretary C.G. Gangadhar pointed out that Congress won more seats in the Vokkaliga-dominated Old Mysuru region due to Shivakumar’s influence, adding, “If Congress wants to retain power, Shivakumar should be made the CM.”

Outgoing president Kenchappa Gowda emphasized Shivakumar’s contribution to Congress’ victory. “Our community voted for Congress thinking he would become CM. Siddaramaiah has also served the party well, but Shivakumar should now be given a chance,” he said.

Former general-secretary Konappa Reddy appealed to Sonia and Rahul Gandhi to recognize Shivakumar’s loyalty and service, saying, “Congress is known to keep its promises. We hope it won’t break the promise made to him.”

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News Network
November 22,2025

Mangaluru: Police Commissioner Sudheer Kumar Reddy C H has warned of strict action against individuals spreading rumours and attempting to create insecurity within the Muslim community and fuel hatred between Hindus and Muslims through social media.

Referring to a recent social media post alleging that police personnel had entered a masjid premises to check whether beef was being cooked, the commissioner said miscreants were attempting to push their communal agenda. 

“A group of people, both from Mangaluru and abroad, are trying hard to spread rumours. For the past 10 days, they have been attempting to rake up old issues, highlight routine matters as controversies, or fabricate news altogether,” he said.

He reiterated that any such attempts to disturb communal harmony would invite legal action. “Cases will be registered and the accused will be brought to book,” he stated.

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