Rupee turns into Asia's worst emerging market currency as funds shun India

Agencies
December 21, 2021

The Indian rupee is set to end a tumultuous year as Asia’s worst-performing emerging market currency with foreign funds fleeing the nation’s stocks.

The currency declined 1.9 per cent this quarter as global funds pulled $4.2 billion of capital out of the country’s stock market, the most among regional markets where data is available.

Foreigners sold Indian stocks as Goldman Sachs Group Inc. and Nomura Holdings Inc. recently lowered their outlook for equities, citing lofty valuations, at a time when concerns about the Omicron variant are roiling the global markets. Record-high trade deficit and the central bank’s policy divergence with the Federal Reserve have also impinged on the rupee’s carry appeal.

“The monetary policy divergence and widening current account gap have set depreciation in the rupee in the near term,” said B. Prasanna, head of global markets, sales, trading and research at ICICI Bank Ltd in Mumbai.

Depreciation in rupee is a double-edged sword for the Reserve Bank of India. While a weaker currency may support exports amid a nascent economic recovery from the pandemic, it also poses risk of imported inflation, and may make it difficult for the central bank to maintain interest rates at a record low for longer.

QuantArt Market Solutions expects the rupee to decline to 78 per dollar by end-March, falling past the previous record low of 76.9088 reached in April 2020, while a Bloomberg survey of traders and analysts forecast the rupee at 76.50. The rupee is set to drop about 4 per cent this year in a fourth straight year of losses.

Stocks on the edge

Foreign exodus from stocks have led to the benchmark S&P BSE Sensex Index falling by about 10 per cent below an all-time high touched in October. Despite that, the one-year forward price-to-earnings ratio for the Sensex is near 21, compared to 12 for MSCI’s Emerging Markets Index, meaning there’s room for the equities to fall even further. Bonds have seen $587 million of outflows this quarter.

Bearish rupee calls are rising as India’s trade deficit widened to an all-time high of about $23 billion in November amid higher imports. The ample liquidity in the banking system, partly created by the RBI’s dollar purchases, may make it difficult for the central bank to intervene to the same extent in 2022 to curb rupee’s losses, according to Goldman Sachs. 

Still, not all are pessimistic. A likely reversal in foreign inflows in the coming quarter on account of share sales in companies including Life Insurance Corp. of India, billed as India’s biggest initial public offer, may cushion the rupee, according to UBS AG.

The rupee gained 0.4 per cent on Tuesday to 75.63 per dollar, helping pare the recent declines.

Beyond the temporary spike in dollar/rupee expected in the next four-to-six weeks, “we see the one-off flows and supportive 1Q current-account seasonality to come at play,” said Rohit Arora, emerging market Asia strategist at UBS. “As long as oil remains tamed, rupee should end the fiscal year below current levels possibly in 74-75 range.”

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 4,2026

shettigar.jpg

An Indian resident who won the Dh20 million (approximately Rs 50 crore) jackpot in Abu Dhabi's Big Ticket draw has told of his joy at sharing his life-changing fortune with a friend.

Shanthanu Shettigar, a shop manager in Muscat, regularly buys tickets for the monthly grand prize draw with one of his closest friends – and the pair won on February 3.

Mr Shettigar, 33, who is from Udyavar in Udupi district of the southern state of Karnataka and has lived in the Omani capital for eight years, said he was left speechless after learning of his success.

“When I first moved to Muscat, many of my colleagues were purchasing Big Ticket, which encouraged me to give it a try,” he said.

“I started buying tickets on my own, and later began sharing tickets with a close friend. The ticket that brought me this win was one we purchased together.”

“Like most people, I receive a lot of spam calls, and I was fully absorbed in my work as well. I knew the live draw was taking place tonight, but I never imagined my name would be announced,” he said.

“When I realised it was real and that I had won, I was honestly speechless. It still hasn’t fully sunk in, but I’m extremely happy.”

Mr Shettigar is not sure how he will spend his share of the money, but encouraged others to take part.

“This win was completely unexpected, so I want to take some time to think things through before deciding what to do next,” he said.

“I would definitely encourage others to participate with Big Ticket, whether with family or friends – you never know when your moment might come.”

The Big Ticket was established in 1992 with an initial first prize of Dh1 million. It is one of the most popular monthly raffles in the UAE.

It has transformed the lives of many people across the Emirates and beyond.

Entry to the Big Ticket Millionaire is Dh500. Tickets can be bought online or at counters at Zayed International Airport and Al Ain Airport.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 3,2026

Bengaluru: Following reports of fresh Nipah virus (NiV) cases in West Bengal and heightened vigilance across parts of Southeast Asia, the Karnataka Health Department has placed the state on high alert and activated emergency preparedness protocols.

Health officials said enhanced surveillance measures have been initiated after two healthcare workers in Barasat, West Bengal, tested positive for the virus earlier this month. While no cases have been reported in Karnataka so far, authorities said the state’s past exposure to Nipah outbreaks and high inter-state mobility warranted preventive action.

Officials have directed district health teams to intensify monitoring, particularly at hospitals and points of entry, and to ensure early detection and isolation of suspected cases.

High Mortality Virus with Multiple Transmission Routes

Nipah virus is a zoonotic disease that can spread from animals to humans and has a reported fatality rate ranging between 60 and 75 per cent. Fruit bats, also known as flying foxes, are the natural reservoirs of the virus and can transmit it by contaminating food sources with saliva or urine.

Known modes of transmission include:

•    Contaminated food: Consumption of fruits partially eaten by bats or raw date-palm sap
•    Animal contact: Exposure to infected pigs or other animals
•    Human-to-human transmission: Close contact with body fluids of infected persons, particularly in healthcare settings

Symptoms and Disease Progression

The incubation period typically ranges from 4 to 14 days, though delayed onset has also been reported. Early symptoms often resemble common viral infections, making prompt clinical suspicion critical.

•    Initial symptoms: Fever, headache, body aches, fatigue, sore throat
•    Progressive symptoms: Drowsiness, disorientation, altered mental state
•    Severe stage: Seizures, neck stiffness and acute encephalitis, which can rapidly progress to coma

Public Health Advisory

The Health Department has issued precautionary guidelines urging the public to adopt risk-avoidance practices to prevent any local spillover.

Do’s
•    Wash fruits thoroughly before consumption
•    Drink boiled and cooled water
•    Use protective equipment while handling livestock
•    Maintain strict hand hygiene

Don’ts
•    Avoid fruits found on the ground or showing bite marks
•    Do not consume beverages made from raw tree sap, including toddy
•    Avoid areas with dense bat populations
•    Do not handle sick or dead animals

Preparedness Measures

Officials confirmed that isolation wards are being readied in major government hospitals and that medical staff are being sensitised to identify early warning signs.

“There is no cause for panic, but there is a need for heightened vigilance,” a senior health official said, adding that there is currently no approved vaccine or specific antiviral treatment for Nipah, and care remains largely supportive.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
February 5,2026

protestkerala.jpg

Mangaluru: The KSRTC Mangaluru division has rolled back the fare hike on buses operating on the Mangaluru–Kasaragod route following the suspension of toll collection at the Arikkady toll plaza near Kumbala in Kasaragod district.

The fare revision had been implemented after the National Highways Authority of India (NHAI) began toll collection at the Arikkady plaza on NH-66. As a result, fares for ordinary and Rajahamsa services were increased by ₹7 and ₹10, respectively, raising the bus fare from Mangaluru to Kasaragod from ₹81 to ₹88.

Senior Divisional Controller of KSRTC’s Mangaluru division, Rajesh Shetty, said the fares were reduced after toll collection at the Arikkady plaza was stopped. “The tollgate began operations on January 13, and the toll amount was deducted from the FASTag accounts of KSRTC buses operating on the route. Following an order from the central government to suspend toll collection, KSRTC has also withdrawn the additional fare with immediate effect,” he said.

At present, vehicles travelling on the Mangaluru–Kasaragod route pay toll only at the Talapady toll plaza. The toll for light motor vehicles (LMVs) at Talapady is ₹80 for a same-day return, while heavy vehicles, including buses, are charged ₹250. At Arikkady, the toll rates were ₹130 for LMVs (same-day return) and ₹450 for buses.

Protests against Arikkady toll plaza

The Arikkady toll plaza witnessed widespread protests from January 12, the day toll collection commenced. On the second day, an action committee led by Manjeshwar MLA A K M Ashraf launched an indefinite protest at the site. Except for the BJP, leaders and workers of most major political parties participated in the agitation.

On the night of January 14, a large number of protesters gathered at the plaza and vandalised property, following which authorities temporarily suspended toll operations. The BJP later also expressed opposition to the toll plaza and criticised NHAI’s decision. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.