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Rupee slide against dollar continues, reaching new lows: touches 71 a dollar

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Rupee slide against dollar continues, reaching new lows: touches 71 a dollar

The Indian rupee continues its downward slide against the dollar, slumping to a fresh record low of 71 against the dollar on Friday, August 31, for the first time ever.

The rupee slipped 26 paise today, reported news agency PTI, on persistent demand for the US currency amid rising crude prices.

Weakness in almost all other Asian peers also gave a boost to the dollar today. Indian rupee was trading at 70.93/94 per dollar and skidded to 71 per dollar in opening deals before recovering slightly on the back of dollar sales by state-run banks, said reports.

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 70.95 a dollar and slipped further to hit its lifetime low of 71 from its previous close of 70.74. Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar’s strength against its rival currencies on expectations of rising interest rates amid lingering Sino-US trade tensions, weighed on the domestic currency.

Growing fears about rising inflation and consistent outflow of foreign funds from the domestic equity market also impacted the domestic currency trading today.

“Indian rupee has depreciated around 11 per cent year to date. Higher crude oil prices, demand from defense and oil marketing firms have contributed to the latest bout of weakness. Rupee was overvalued on trade weighted real effective exchange rate. Robust FDI flows in e-commerce companies, healthy forex reserves may limit the downside of the rupee,” said VK Sharma, Head Private Client Group & Capital Market Strategy, HDFC Securities, according to an NDTV report.

Reserve Bank of India (RBI) was likely sporadically selling dollars through state-run banks to prevent a sudden sharp fall but traders do not expect any major intervention as the fall has been in line with fundamentals, said Reuters.

On Thursday, the rupee slid by 15 paise to close at 70.74 to the dollar, marking the weakest closing level for the rupee against the US currency.

Meanwhile, domestic market indices opened at a cautious note on Friday, ahead of the release of key GDP (Gross Domestic Product) data scheduled later in the day.

Globally, oil prices slipped slightly after hitting their highest levels in more than a month the previous day on growing evidence of disruptions to crude supply from Iran and Venezuela and after a fall in US inventories.

Asian shares came under renewed pressure today as a report that US President Donald Trump was preparing to step up a trade war with Beijing sent Chinese stocks lower and partially erased gains made in this week’s global rally, NDTV report said.

The rupee has significantly slid in its value over the last few months. The value of the rupee against the dollar has fallen by more than 6 percent since the beginning of 2018, and the fall has gained further momentum in the last few days, hitting life-time lows, said a report on News18 portal.

Most of the world’s currencies are bought and sold based on flexible exchange rates, meaning their prices fluctuate based on the supply and demand in the foreign exchange market. A high demand for a currency or a shortage in its supply will cause an increase in price, explained News18.

One of the primary reasons linked to the fall is the US Federal Reserve being expected to tighten its monetary policy stance further in the coming months by taking steps towards slowing down the growth in US money supply.

A slowdown in US money supply growth affects the value of rupee in two ways. Firstly, interest rates in the US will begin to rise as the Fed’s demand for various assets begins to drop. This causes a rush among investors to sell their assets in other parts of the world and invest the money in the US, where they could earn higher returns. The consequent flow of capital from the emerging markets to the US increases selling pressure on emerging market currencies and buying pressure on the dollar.

Secondly, as the Fed begins to tighten money supply, the availability of dollars in the global market is likely to turn scarce, compared to other currencies.

Both these factors increase demand for dollar and raise the price at which it is bought using other currencies.

Impact of falling rupee:

The weakening rupee will make crude oil, fertilisers, medicines and iron ore, which India imports in large quantities, costlier.

These are not items of daily consumption, but they impact an individual’s finances indirectly and lead to overall price rise: costlier crude oil will lead to rise in petrol and diesel prices (see below); pulses and oil, which account for a large part of India’s imports, will also be affected; students who have taken loans to fund their foreign degrees will also bear the brunt. Education loans are usually in rupees, but as students pay their expenses in a foreign currency, the cost of education and stay will increase. Transport of goods, automobile prices and items using imported parts will all become expensive.

Petrol and diesel prices shoot up, Diesel crosses Rs.70/litre mark for the first time in Delhi

Fuel prices shot up again on Friday and, with a surge of 28 paise per litre, diesel is selling above the 70-mark for the first time in Delhi at Rs 70.21 per litre, said a report in the India Today.

For Mumbai and Kolkata, diesel has increased to Rs 74.54 per litre and Rs 73.06 per litre.

Petrol prices have gone up by around 21 paise per litre to Rs 78.52 in Delhi, Rs 81.44 in Kolkata and Rs 85.93 in Mumbai.

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Google restores delisted Indian apps after government intervention

Google on Saturday restored all Indian apps it had removed.

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Google has started to restore all the delisted Indian mobile apps on Play Store agian, which they had removed due to a disagreement over service fees. After a discussion between company representatives and IT Minister Ashwini Vaishnaw, the decision was made, according to sources.

The step was taken in response to Vaishnaw’s strong statement in which he said that it is not allowed for apps to be removed from the Google Play Store. The minister had said, India is very clear, our policy is very clear…our startups will get the protection that they need.

Vaishnaw  continued saying that he has already given Google a call. They will be speaking with the app developers who were delisted this week. This is not acceptable. The minister said this kind of delisting cannot be permitted.

Ten Indian companies’ apps were banned by Google on Friday, causing outrage in one of its fastest-growing markets. With 94% of phones running on its Android platform, Google holds a large portion of the Indian market. Popular names like Naukri and Bharatmatrimony were on the list.

The main point of contention is Google’s in-app purchase fees, which range from 11% to 26%. Indian startups have long opposed the US tech giant’s actions, believing them to be unfair.

The founder of Bharat Matrimony, Christian Matrimony, Muslim Matrimony, and Jodii, Matrimony.com, expressed shock at the matchmaking apps’ removal from the Google Play Store.

Shaadi. Com CEO Anupam Mittal described it as a dark day for India’s internet, highlighting the possible broad effects on matchmaking services. He also called Google an evil.

While, Kuku FM Co-founder Vinod Kumar Meena in a statement had said that Google was behaving like a monopoly.

Meanwhile, Google temporarily withdrew the famous Indian payments app Paytm from the Play Store in 2020, claiming a few policy infractions. Due to this decision, the founder of the company as well as the larger startup community came together to build their own app stores and file lawsuits against Google.

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Anant Ambani says he is 100% lucky to get Radhika Merchant in his life

Anant Ambani said he was grateful to get Radhika as his life partner. He said he is 100% lucky to get Radhika Merchant in his life. He said every day he is falling more and more in love with her. He added although he had known Radhika for the last 7 years, it felt he had met her only yesterday. He thanked Radhika for everything.

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Anant Ambani and Radhika Merchant’s grand three-day wedding celebrations began with a glamorous cocktail night on Friday in Jamnagar. During the celebrations, Anant Ambani also gave a speech wherein he thanked his late grandfather Dhirubhai Ambani and grandmother Kokilaben Ambani for inspiring him. Anant Ambani said he was grateful to get Radhika as his life partner. He said he is 100% lucky to get Radhika Merchant in his life. He said every day he is falling more and more in love with her.

He expressed his gratitude to his mother for pulling together the lavish three-day wedding celebrations in Jamnagar. Anant thanked his mother for all she had done. He said all the arrangements had been done by his mother and nobody else. He added his mother had gone all out and she had worked 18-19 hours a day and he was extremely grateful to her.

He also thanked all the guests who were present there at the pre-wedding celebrations. He said everyone had made it to Jamnagar to make him and Radhika feel special. He said both of them were honored and humbled to have all of them present there. Anant said he was sorry if they had caused an inconvenience to anyone. He asked for forgiveness. He hoped everyone is going to enjoy the coming three days. He also thanked his mother, father, sister, brother, his sister-law and his brother in-law for making this event memorable.

Anant said everyone has been sleeping for less than 3 hours a day for the last 2-3 months and he was very happy to share this joy with everyone. The youngest Ambani talked about his personal struggles and how his parents had always supported him. He further added his life had not been entirely a bed of roses. He said he had also experienced the pain of thorns. He said he had faced many health crises.

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Facebook chief Mark Zuckerberg shares pictures from 2nd day of Anant Ambani and Radhika Merchant pre-wedding celebrations

Zuckerberg shared pictures from the 2nd day of Anant Ambani and Radhika Merchant’s pre-wedding celebrations. In the photograph Mark Zuckerberg can be seen along with his wife Priscilla Chan. The couple is exuding happiness as they prepare for the event. He captioned the picture it is getting wild out here.

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Facebook boss Mark Zuckerberg and wife Priscilla Chan joined the star- studded pre-wedding celebrations of Anant Ambani and Radhika Merchant in Jamnagar on Friday. The event was attended by many prominent figures from different fields. Zuckerberg took to his Instagram handle congratulated the couple and said he loved Indian weddings.

Zuckerberg shared pictures from the 2nd day of Anant Ambani and Radhika Merchant’s pre-wedding celebrations. In the photograph Mark Zuckerberg can be seen along with his wife Priscilla Chan. The couple is exuding happiness as they prepare for the event. He captioned the picture it is getting wild out here.

The theme of the opening day of the pre-wedding celebrations was Evening in Everland as the guests wore cocktail attire. The first day of the grand celebrations elevated the expectations of the guests for the following days. The theme of the 2nd day of the pre-wedding bash is known as a Walk on the Wildside and the guests can be seen in Jungle Fever attire.

Zuckerberg has opted for an animal print shirt with white trousers, Chan is complementing his look in a strappy one piece in black and golden. The Jungle theme is aligned to Vantara, Reliance’s animal welfare initiative undertaken and launched by Anant Ambani a few days back.

International pop star Rihana electrified the pre wedding celebrations on Friday with an amazing performance, marking her debut appearance in India. The chart topping artist engaged the audience with performances of her iconic hits which included Pour it Up, Work and Diamonds.

Zuckerberg graced the opening day, wearing a black-on-black firefly blazer and shoes from Alexander McQueen while his wife Priscilla wore a black gown with gold flower details and other accessories such as dainty chain bracelet, gold necklace and stud earrings. Mark Zuckerberg and wife Priscilla Chan are one of the Power couples invited from the global business community for the festivities currently underway at Jamnagar.

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