Rupee hits lifetime low of 72.18, drops 45 paise against US dollar

Agencies
September 10, 2018

Mumbai, Sept 10: The rupee on Monday slumped to a fresh record low of 72.18 by falling 45 paise against the U.S. dollar on strong demand for the U.S. currency from importers as the greenback strengthened against other currencies overseas on upbeat jobs data.

At the Interbank Foreign Exchange (Forex) market, the local currency opened at record low of 72.15 a dollar from its previous close of 71.73 and slipped to hit a fresh low of 72.18, down by 45 paise. It had breached its previous record low of 72.11 hit on September 6.

Forex dealers said besides strong demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.

Furthermore, the dollar strength against its rival currencies overseas amid fears of a possible escalation in the US-China trade conflict too put pressure on the rupee, they said.

The rupee on Friday staged a turnaround to close higher by 26 paise at 71.73 after heavy intervention by the Reserve Bank of India.

Meanwhile, the BSE Sensex dropped by 85.01 points, or 0.22 per cent, to 38,304.81 in opening trade.

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News Network
March 28,2024

New Delhi: After India summoned an American diplomat over their remarks on the arrest of Delhi Chief Minister Arvind Kejriwal in the liquor policy case, the US reiterated on Wednesday its call for "fair, transparent, timely legal processes".

We continue to follow these actions closely, including the arrest of Delhi Chief Minister Arvind Kejriwal, said US State Department Spokesperson Matthew Miller while responding to questions on India summoning Gloria Berbena, the US Acting Deputy Chief of Mission in New Delhi.

The meeting at the foreign ministry's South Block office lasted nearly 40 minutes yesterday with India objecting strongly to the US remarks on the arrest of Mr Kejriwal.

Miller also responded to a question on the Congress party's frozen bank accounts, saying, "We are also aware of the Congress party's allegations that tax authorities have frozen some of their bank accounts in a manner that will make it challenging to effectively campaign in the upcoming elections."

He said the US encourages "fair, transparent and timely legal processes" for each of these issues.

"With respect to your first question, I'm not going to talk about any private diplomatic conversations, but of course, what we have said publicly is what I just said from here, that we encourage fair, transparent, timely legal processes. We don't think anyone should object to that," he said.

Mr Kejriwal was arrested last week by the Enforcement Directorate (ED), the third Aam Aadmi Party (AAP) leader after Manish Sisodia and Sanjay Singh to be taken into custody in connection with the alleged liquor policy scam.

The US State Department on Tuesday said it is monitoring reports of Mr Kejriwal's arrest and called on New Delhi to ensure "a fair and timely legal process" for the jailed Chief Minister.

India objected to it and warned of "unhealthy precedents".

"States are expected to be respectful of the sovereignty and internal affairs of others, and this responsibility is even more so in case of fellow democracies. It could otherwise end up setting unhealthy precedents," the foreign ministry said.

"India's legal processes are based on an independent judiciary which is committed to objective and timely outcomes. Casting aspersions on that is unwarranted," the ministry stressed.

The US remarks came days after Germany's Foreign Office stressed that Mr Kejriwal is entitled to a fair and impartial trial. The Indian government had reacted strongly and summoned the German envoy, labelling their remark "blatant interference in internal matters".

The excise policy was introduced to bring an overhaul to the liquor business in Delhi, but was scrapped after Lieutenant Governor VK Saxena ordered a probe into the alleged irregularities in the policy. The ED believes the bribe money from the policy was allegedly used for funding the AAP's election campaigns. It has also called Mr Kejriwal a "conspirator" in the case.

His arrest just ahead of the 2024 Lok Sabha election has also prompted furious protests from the opposition camp.

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News Network
March 21,2024

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New Delhi: India has now become more unequal in terms of wealth concentration than the British colonial period as income and wealth of the top 1% of the country’s population have hit historical highs, according to a paper released by World Inequality Lab.

By 2022-23, the top 1 per cent income share in India was 22.6 per cent and the top 1 per cent wealth share rose to 40.1 per cent, with India’s top 1 per cent income share among the very highest in the world, higher than even South Africa, Brazil and the US.

Co-authored by economists Nitin Kumar Bharti, Lucas Chancel, Thomas Piketty, and Anmol Somanchi, the paper stated that the “Billionaire Raj” headed by “India’s modern bourgeoisie” is now more unequal than the British Raj headed by the colonialist forces. 

The paper said there is evidence to suggest the Indian tax system might be “regressive when viewed from the lens of net wealth”. A restructuring of the tax code is needed, the paper said, adding that a levy of a “super tax” of 2 per cent on the net wealth of 167 wealthiest families would yield 0.5 per cent of national income in revenues and create space for investments.

“A restructuring of the tax code to account for both income and wealth, and broad-based public investments in health, education and nutrition are needed to enable the average Indian, and not just the elites, to meaningfully benefit from the ongoing wave of globalisation. Besides serving as a tool to fight inequality, a “super tax” of 2% on the net wealth of the 167 wealthiest families in 2022-23 would yield 0.5% of national income in revenues and create valuable fiscal space to facilitate such investments,” the paper said. 

The paper has analysed data based on the annual tax tabulations published by the Indian income tax authorities to extract the distribution of top income earners between 1922-2020.

The share of national income going to the top 10 per cent fell from 37 per cent in 1951 to 30 per cent by 1982 after which it began steadily rising. From the early 1990s onwards, the top 10 per cent share increased substantially over the next three decades, nearly touching 60 per cent in the most recent years, the paper said. This compares with the bottom 50 per cent getting only 15 per cent of India’s national income in 2022-23.

 The top 1 per cent earn on average Rs 5.3 million, 23 times the average Indian (Rs 0.23 million). Average incomes for the bottom 50 per cent and the middle 40 per cent stood at Rs 71,000 (0.3 times national average) and Rs 1,65,000 (0.7 times national average), respectively.
The richest, nearly 10,000 individuals (of 92 million Indian adults) earn on average Rs 480 million (2,069 times the average Indian). “To get a sense of just how skewed the distribution is, one would have to be at nearly the 90th percentile to earn the average income in India,” the paper said.

In 2022, just the top 0.1 per cent in India earned nearly 10 per cent of the national income, while the top 0.01 per cent earned 4.3 per cent share of the national income and top 0.001 per cent earned 2.1 per cent of the national income.

Enlisting the probable reasons for sharp rise in top 1 per cent income shares, the paper said public and private sector wage growth could have played a part till the late 1990s, adding that there are good reasons to believe capital incomes likely played a role in subsequent years. For the shares of the bottom 50 per cent and middle 40 per cent remaining depressed, the paper said, the primary reason has been the lack of quality broad-based education, focused on the masses and not just the elites.

“One reason to be concerned with such high levels of inequality is that extreme concentration of incomes and wealth is likely to facilitate disproportionate influence on society and government. This is even more so in contexts with weak democratic institutions. After largely being a role model among post-colonial nations in this regard, the integrity of various key institutions in India appears to have been compromised in recent years. This makes the possibility of India’s slide towards plutocracy even more real. If only for this reason, income and wealth inequality in India must be closely tracked and challenged,” it said.

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News Network
March 15,2024

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New Delhi, Mar 13: The Supreme Court on Friday took exception to the State Bank of India (SBI) for not disclosing complete details of Electoral Bonds, including unique alfa numeric numbers, furnished to the Election Commission for uploading on the website.

A five-judge Constitution bench led by Chief Justice of India D Y Chandrachud issued notice to the SBI seeking its response on Monday after the court was informed that the issuing bank for the Electoral Bonds has not disclosed unique alfa numeric number of each bond.

"They have not disclosed the bond numbers. It has to be disclosed by the State Bank of India. All details have to be provided by the SBI," the bench, also comprising Justices Sanjiv Khanna, B R Gavai, J B Pardiwala and Manoj Misra, noted.

Senior advocate Kapil Sibal said as per the Constitution bench judgment of February 15, 2024, all details were to be disclosed.

Solicitor General Tushar Mehta submitted since the SBI was a party to the judgment, notice may be issued to it.

The court said the counsel for SBI should have been here.

"If you see the judgment, we have specified that bond numbers have to be provided," the bench said.

Advocate Prashant Bhushan appeared for the main petitioner Association for Democratic Reforms (ADR).

On an application by the EC, the bench said the details of Electoral Bonds furnished by the poll panel before the top court should be scanned and returned to it for the purpose of uploading on the website.

The Election Commission through advocate Amit Sharma filed a plea in the Supreme Court seeking a direction to release data on electoral bonds furnished to the top court in terms of previous orders of April 12, 2019 and November 2, 2023.

As per March 11, 2024 order, the Election Commission on Thursday uploaded the data on electoral bonds furnished to it by the SBI.

However, in an application, the poll panel said it had furnished to the Supreme Court a number of sealed envelopes, containing details on EBs encashed by the political parties, during the course of hearing in the matter.

It sought a direction for the return of those sealed envelopes to comply with the directions to upload it on the website as per order of March 11.

On Monday, the Supreme Court had told the SBI to furnish details of purchasers of Electoral Bonds and names of political parties redeemed those instruments by March 12 to the Election Commission, rejecting its plea for extension of time until June 30 for the purpose.

It had then directed the Election Commission to publish the information provided by the SBI on its website on March 15.

In its February 15, 2024 judgment, the SC had declared the Electoral Bonds scheme, introduced in 2018 for donation to political parties, as "unconstitutional" for being violative of the right to information.

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