The Indian rupee depreciated by five paise at 62.57 against the US dollar today on fresh demand for the American currency from importers.

Besides, a lower opening in domestic equity markets put pressure on the local unit, forex dealers said.

The rupee had gained 17 paise to end at 62.52 against the US dollar yesterday.

Meanwhile, the benchmark BSE Sensex fell by 136.92 points, or 0.48 per cent, at 28,332.75 in early trade today.

US President Barack Obama has signed into law the Ukraine Freedom Support Act of 2014, which provides for increased sanctions against Russia in response to its support of the pro-Russian insurgency in the eastern part of Ukraine.

The law, which passed the House and Senate unanimously, allows for but does not require the US to provide lethal and nonlethal military assistance to Ukraine. The law also provides for further sanctions against the Russian energy sector and defense industry.

The Ukraine Freedom Support Act, co-authored by U.S. Senator Bob Corker (R-Tenn.), ranking member of the Senate Foreign Relations Committee, and Foreign Relations Committee Chairman Robert Menendez (D-N.J.), also would provide Ukraine with energy, defense sector, and civil society assistance, and expand broadcasting programs to counter Russian propaganda in countries of the former Soviet Union, a Foreign relations Committee press release stated.

“Signing this legislation does not signal a change in the Administration’s sanctions policy, which we have carefully calibrated in accordance with developments on the ground and coordinated with our allies and partners. At this time, the Administration does not intend to impose sanctions under this law, but the Act gives the Administration additional authorities that could be utilized, if circumstances warranted,” Obama said in an official statement.

“My Administration will continue to work closely with allies and partners in Europe and internationally to respond to developments in Ukraine and will continue to review and calibrate our sanctions to respond to Russia's actions. We again call on Russia to end its occupation and attempted annexation of Crimea, cease support to separatists in eastern Ukraine, and implement the obligations it signed up to under the Minsk agreements,” he continued.

“As I have said many times, our goal is to promote a diplomatic solution that provides a lasting resolution to the conflict and helps to promote growth and stability in Ukraine and regionally, including in Russia.  In this context, we continue to call on Russia's leadership to implement the Minsk agreements and to reach a lasting and comprehensive resolution to the conflict which respects Ukraine’s sovereignty and territorial integrity.  We remain prepared to roll back sanctions should Russia take the necessary steps,” the statement ended.

After the bill passed both houses of Congress but before it was signed into law, the Russian Foreign Ministry posted a response Dec. 12 on its website. “Both houses of the US Congress have approved the Ukraine Freedom Support Act bypassing debates and proper voting. The overtly confrontational message of the new law cannot but evoke profound regret. Once again Washington is leveling baseless sweeping accusations against Russia and threatening more sanctions,” the statement attributed to spokesman Alexander Lukashevich said.

“At the same time it is muddling together the Ukrainian and Syrian conflicts, which the United States has been instrumental in inflating. It even refers to the INF Treaty although American compliance with it is questionable, to put it mildly. At the same time, it promises to Kiev to arm its military operation in Donbass and openly admits that it intends to use NGOs for an impact on Russia’s domestic processes,” he continued.

“Though it appears that major challenges to international security demand pooled Russian and American efforts, US legislators follow President Obama’s administration destroying the very foundation of partnership. Bilateral relations are being torpedoed no less powerfully than by the notorious Jackson-Vanik amendment, endorsed in 1974 to obstruct cooperation for several decades. We cannot but conclude that, blinded by outdated phobias, the United States is anxious to reverse time,” Lukashevich added.

“As the US Congress instigates anti-Russian sanctions, it should part with the illusion of their effect. Russia will not be intimidated into giving up its interests and tolerating interference in its internal affairs,” he concluded.

Senator Corker, one of the authors of the law, said unanimous support for the legislation demonstrates “a firm commitment to Ukrainian sovereignty” in response to a continued Russian invasion.

Since the last round of U.S. sanctions on Sept. 12, Russia has repeatedly violated its commitments under a proposed ceasefire by affirming an illegal rebel election in eastern Ukraine and continuing to support separatist fighters with troops and heavy weapons, a statement by the US Senate Foreign Relations Committee read, adding that the Obama administration has yet to approve the Ukrainian government’s request for arms.

“The hesitant U.S. response to Russia’s continued invasion of Ukraine threatens to escalate this conflict even further. Unanimous support for our bill demonstrates a firm commitment to Ukrainian sovereignty and to making sure Putin pays for his assault on freedom and security in Europe,” Senator Corker said when the bill passed the Senate.

At a Dec. 16 press briefing in the White House, press secretary Josh Earnest said there was no substantial shift in White House policy toward Russia, and that sanctions were working. “Every week and month that goes by that the sanctions regime is in place we see that the toll that is being taken by the Russian economy grows. … It will be up to President [Vladimir] Putin to decide whether or not these economic costs are worth it to him and are worth it to the Russian people,” he said.

“The President and our partners stand ready to begin to roll back the sanctions regime against Russia as soon as Russia demonstrates a clear commitment to implementing the kinds of commitments that they’ve made to deescalate the situation in Ukraine. But we have not seen Russia follow through on those promises and, as a result, that sanctions regime has remained in place.  And as long as that sanctions regime remains in place, the cost on the Russian economy will continue to increase,” he concluded.

Over five crore subscribers of the EPFO will get 8.75 per cent interest this fiscal on their provident fund deposits - the same rate as the previous year.

"Finance ministry has ratified the decision of the EPFO's central board of trustees (CBT) to retain 8.75 per cent rate of interest for the current fiscal," said a source.

The rate was same in the previous year, 2013-14, when it was raised from 8.5 per cent in the 2012-13 fiscal. 

This rate of interest on PF deposits would now need to be notified by the labour ministry as well as by the income tax department. The decision would be implemented from the date of notification, a senior official said.

The CBT had decided to retain the interest rate on PF deposits at 8.75 per cent for the current fiscal at its meeting on August 26.

As per the practice, decision of the trustees of Employees' Provident Fund Organisation on interest rate is implemented after the concurrence of the finance ministry.

According to the EPFO's income projection, payment of 8.8 per cent rate of interest would have left a surplus of Rs 77.15 crore. But since the income projection of Rs 29,136.42 crore for the current fiscal was done without factoring in interest payment burden due to enhanced wage ceiling, EPFO had suggested to fix 8.7 per cent rate of return on PF deposits for 2014-15.

The body recently enhanced the wage ceiling for becoming member of the scheme at the time of joining a job to Rs 15,000 from Rs 6,500 per month. The new wage ceiling is effective from September 1. 

India’s first experimental flight GSLV Mark III took off successfully from the second launch pad at Satish Dhawan Space Centre, in Sriharikota on Thursday. Also known as LVM3/CARE, this suborbital experimental mission was intended to test the vehicle performance during the critical atmospheric phase of its flight and this carried passive (non functional) cryogenic upper stage.