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Indian stocks slump on global monetary policy tightening; Rupee at new low

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Indian stocks extended their losses from the previous session and declined further on Friday morning following the latest policy rates hike by the US Federal Reserve in its fight against high inflation.At 10.05 am, Sensex and Nifty traded in the 0.8-0.9 per cent range. Further tightening of monetary policy in the US essentially means that investors will have a tendency to move to the US markets for better and stable returns.

Meanwhile, the Rupee tasted yet another lifetime low on Friday morning after the US dollar index strengthened to a two-decade high this week, on hopes that demand for safe-haven currency such as the dollar would pick up.This morning, the Rupee opened 25 paise lower to touch a record low of 81.09 versus the US dollar, against Thursday’s close of 80.86. Yesterday’s depreciation was the biggest single-day fall for the rupee since February 24.

The US Federal Reserve had raised the repo rate by 75 basis points — which is the third consecutive hike of the same magnitude, in line with expectations. The Fed also hinted that more rate hikes were coming and that these rates would stay elevated until 2024.The US central bank seeks to achieve maximum employment and inflation at the rate of 2 percent over the long run and it anticipates that the ongoing hikes in the target range will be appropriate.

Raising interest rates is a monetary policy instrument that typically helps suppress demand in the economy, thereby helping the inflation rate decline.Consumer inflation in the US though declined marginally in August to 8.3 per cent from 8.5 percent in July but is way above the 2 percent goal.

India’s forex reserves are at two-year low. The reserves have dropped by almost USD 80 billion since the escalation of the Russia-Ukraine tensions into war earlier this yearIndia’s forex reserves have been consistently dropping for the past few month, on account of RBI’s likely intervention in the market to defend the depreciating rupee.

Typically, the RBI intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.A depreciation in the rupee typically makes imported items costlier. “The Dollar Index may continue with its positive bias as the US Fed decided to raise interest rate by 75 bps, for a third consecutive month and signalled that it would continue to lift rates this year at a most rapid pace to combat inflation, which is running hot,” said ICICI Securities.

– Statesman/ANN



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Timely and accurate data essential for effective decision making – PM

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A meeting was held to discuss post-disaster planning and the reconstruction process, with special focus on flood-prone areas on Monday [8 th of December]  at the Prime Minister’s Office under the patronage of the Prime Minister, and attended by representatives from the United Nations Development Programme (UNDP), the World Bank, and the United Nations Office for Project Services (UNOPS).

During the meeting, the Prime Minister emphasized the critical importance of timely and systematic information and data collection to support timely and effective decision-making on a daily basis following the post disaster situations. The Prime noted that accurate data flows are essential for guiding recovery efforts in the short and long term.

The Representatives outlined the need assessment process using RAPIDA and Global Rapid Post-Disaster Damage Estimation (GRADE), the UNDP’s post-crisis assessment initiated by integrating GIS technology, satellite imagery, and ground-level data, to deliver real-time, actionable insights after a crisis to helps identify affected locations, communities, infrastructure damage, debris estimates, and land use changes-providing crucial data.

The representatives of UNDP reaffirmed their commitment to supporting the Government and they expressed their readiness to collaborate closely and to strengthen ongoing partnerships to enhance the efficiency and effectiveness of post-disaster response and reconstruction activities.

The discussion was attended by the Country Manager for World Bank Dr. Gevorg Sargsyan, Resident Representatives for United Nations Development Programme (UNDP) Ms. Azusa Kubota, South Asia Director for United Nations Office for Project Services ((UNOPS), and Secretary to the Prime Minister  Pradeep Saputhanthri, Additional Secretary (Development) Ms Sagarika Bogahawaththa and officials from the Department of National Planning.

[Prime minister’s media division]

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Bandaranaike Memorial National Foundation donates Rs. 250 million to the Government for national recovery after the emergency situation

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The Bandaranaike Memorial National Foundation has donated Rs. 250 million to the Government to support the rebuild of the country following the emergency situation caused by the Ditva cyclone.

Chairperson of the Bandaranaike Memorial National Foundation, former President Chandrika Bandaranaike, together with the Board of Directors, handed over the cheque to Prime Minister Dr. Harini Amarasuriya on 08 th of December at the Prime Minister’s Office.

Subsequently, a cordial discussion was held between the Foundation’s Chairperson, former President Chandrika Bandaranaike, and Prime Minister Dr. Harini Amarasuriya.

The occasion was attended by the secretary to the Prime Minister Pradeep Saputhanthri, Minister of Buddhasasana, Religious and Cultural Affairs Dr. Hiniduma Sunil Senevi, and representatives of the Board of Directors of the Bandaranaike Memorial National Foundation.

[Prime Minister’s Media Division]

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Level III landslide warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale extended

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The Level III RED landslide early warnings issued to the Districts of Kandy, Kegalle, Kurunegala and Matale by the Landslide Early Warning Center of the National Building Research Organisation [NBRO] have been extended until 1600hrs tomorrow [10th December 2025].

Accordingly,
The LEVEL III RED landslide early warnings issued to the Divisional Secretaries Division and surrounding areas of Panvila, Udapalatha, Minipe, Poojapitiya, Gangawata Korale, Thumpane, Doluwa, Pathadumbara, Ganga Ihala Korale, Harispattuwa, Akurana, Ududumbara, Pathahewaheta, Hatharaliyadda, Yatinuwara, Deltota, Medadumbara, Udunuwara, Kundasale and Pasbage Korale in the Kandy district, Yatiyanthota, Rambukkana, Aranayaka, Warakapola, Galigamuwa, Mawanella and Bulathkohupitiya in the Kegalle district, Mallawapitiya, Rideegama and Mawathagama in the Kurunegala district, and Ukuwela, Pallepola, Rattota, Matale, Laggala Pallegama, Yatawatta, Naula, Ambanganga Korale and Wilgamuwa  in the Matale district have been extended.

LEVEL II AMBER landslide early warnings  issued to the Divisional Secretaries Division and surrounding areas of Uva Paranagama, Hali_Ela, Meegahakivula, Badulla, Kandeketiya, Bandarawela, Soranathota, Ella, Haputhale, Lunugala, Welimada, Haldummulla and Passara in the Badulla district, Ruwanwella, Dehiowita, Kegalle and Deraniyagala in the Kegalle district, Alawwa and Polgahawela in the Kurunegala district and Nuwara Eliya, Nildandahinna, Thalawakele, Kothmale West, Mathurata, Ambagamuwa Korale, Hanguranketha, Walapane, Kothmale East and Norwood in the Nuwara Eliya district, and Kahawaththa, Kolonna and Godakawela  in the Ratnapura district have also been extended.

LEVEL I YELLOW landslide early warnings issued to the Divisional Secretaries Divisions and surrounding areas of Mirigama, Divulapitiya and Attanagalla in the Gampaha district, Narammala in the Kurunegala district, and Kiriella, Balangoda, Kuruwita, Openayake, Nivithigala, Kaltota, Pelmadulla, Kalawana, Eheliyagoda, Elapatha, Ayagama, Imbulpe and Ratnapura in the Ratnapura district.

 

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