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Rupee slips below 75 against dollar; closes at six-week low

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Rupee slips below 75 against dollar; closes at six-week low

The rupee weakened further on Friday and settled below $75 per dollar for the first time in 2022, after U.S. inflation accelerated to a 40-year high of 7.5 percent year-on-year in January, spooking global markets.

The rupee weakened after the Reserve Bank of India (RBI) announced a “super dovish” policy on Thursday, and weakened further on Friday on a stronger global dollar.

“The rupee fell against the dollar after U.S. inflation rose sharply in January. U.S. consumer prices rose steadily in January, leading to the largest annual increase in inflation in 40 years, fueling financial market speculation that the Federal Reserve will raise interest rates sharply next month. Motilal Gaurang Somaiya, currency and gold analyst at Oswal Financial Services, said the dollar rose against major crosses after inflation picked up.

The rupee settled below the 75/$ mark for the first time in 2022 at 75.38, compared to Thursday’s close of 74.94. This is the lowest closing price for the domestic unit since December 22, 2021.

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The level was breached by 75 following the release of U.S. inflation data, a currency trader said. “Rupee weakened in early trade due to broad dollar strength,” a trader said.

There was no central bank intervention in foreign exchange markets on Friday, traders said.
The local currency is likely to come under pressure in the coming days as international crude oil prices hover above $90 a barrel. External conditions have been exacerbated by high crude oil prices as India imports more than 80% of its crude oil needs.

“We expect the dollar to trade in the 75.05 and 75.80 range,” Somaiya said.

Among the global factors, one of the main concerns is inflation, which could affect Indian units. Goldman Sachs has now included a forecast of seven Fed rate hikes of 25 basis points this year, up from five such hikes. The update comes after January’s inflation data. Domestically, crude oil prices will be one of the factors affecting the rupee.

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Unlike past 2013 Fed tapering “tantrums” that led to a currency crisis in India, this time is different. The country’s foreign exchange reserves are much higher — $632 billion versus $275 billion — and the current account deficit is much smaller. Inflation also remained within the RBI’s 2-6% target range, albeit closer to the ceiling. The central bank expects inflation to cool from the second half of next financial year, as it expects CPI inflation to come in at 4.5% in FY23.

According to the latest data from the Reserve Bank of India, the country’s foreign exchange reserves stood at nearly $632 billion in the week to February 4. Since peaking in September 2021, the country’s foreign exchange reserves have fallen by about $10 billion.

Complete News Source : Business Standard

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Startups that use excerpts from their own pitch are sent legal notifications by Shark Tank India; the creator responds, “Kaise banega naya India?”

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Startups that use excerpts from their own pitch are sent legal notifications by Shark Tank India; the creator responds, “Kaise banega naya India?”

After getting a legal letter from Sony Pictures for copyright infringement, the subscription-based tea business Dorje Teas found itself in deep water for utilising footage from their own pitch on YouTube and Meta advertisements.

The founders of the subscription-based tea company Dorje Teas, Ishaan Kanoria and Sparsh Agarwal.

While many entrepreneurs, especially those with startups, have found transformation through the business reality TV series Shark Tank India, the narrative is slightly different for Dorje Teas, a subscription-based tea firm that ships organic and fresh-from-the-farm Darjeeling Tea to consumers throughout India. Sony Pictures Networks India slapped the firm with a legal notice, which has placed it in hot water.

Co-founder Sparsh Agarwal of the company, who brought Dorje Teas to Shark Tank India last year and raised funds of Rs 30 lakh for 15% equity from Anupam Mittal, Peyush Bansal, and Vineeta Singh, valued the business at Rs 2 crore, recently revealed on LinkedIn that they received a legal notice from Shark Tank India for utilising snippets of their own pitch.

Agarwal claims that they received a notification about copyright infringement for utilising these clips in YouTube and Meta advertisements. It appears that Sony Pictures has sent notice to other companies besides Dorje Teas. He said, “They’ve clamped down on every single startup that showed up on Shark Tank, so we’re not the only ones.”

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“I don’t understand why they would do this, even though I am aware of the copyright rules that justify it. After all, Dorje Teas and several other businesses, like Skippi, Assembly, Perfora, Hoovu Fresh, Beyond Snack, Wakao Foods, Nasher Miles, and many more, invest thousands of dollars each month to enhance Shark Tank content, which helps the Shark Tank India brand get free exposure and increase brand memory,” he continued.

Agarwal went on to call it a poor business choice that some executive or lawyer at Sony had made, adding that it “goes against the entire ethos of promoting small startups.”

Additionally, the focus of Shark Tank Season 3 has been on creating a new India and assisting the startup environment in India. “How will we construct a ‘new India’ in this manner?’” he questioned in a self-recorded video.

On social media, Agarwal was met with praise, while some contended that Sony’s actions were legitimate in theory. “Dear Sparsh, you must realise that ‘You are the content’ in this situation. You play a big part in content production. You posted the material that features you on your social media accounts (Facebook, Instagram, YouTube, and so on), but not on Sony’s. You might say that the traffic they were supposed to get was somehow redirected to them. A content strategist made the observation, “You are monetizing your social channels with the content they produce.”

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“The first person to provide a sneak peek in the content industry attracts greater attention. Furthermore, it’s possible that you agreed to sign a waiver giving them perpetual rights to the footage they shot. They said, “Verify your contract or try to recall signing any electronic documents on the filming locations that make this clear.

“You are investing lakhs of dollars to promote Shark Tank, while Shark Tank is investing billions of dollars to plan and publicise the programme that features your brand.” Simply alter your viewpoint, as another poster pointed out.

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