Rupee plunges against US dollar amid spike in crude prices

The level of US-Iran tensions has skyrocketed

January 03, 2020 05:55 pm | Updated 05:57 pm IST - Mumbai

Representational image

Representational image

The rupee plunged by 42 paise to settle at a one-and-a-half-month low of 71.80 against the US currency on Friday due to a spike in crude oil prices after US President Donald Trump ordered strike on an Iranian commander.

On Thursday, the domestic unit had dropped by 16 paise to end at 71.38 against the US dollar.

At the interbank foreign exchange market, the rupee opened at 71.56, then lost further ground to touch a low of 71.81 against the American currency.

The unit finally settled at 71.80 against the US dollar, logging its biggest single-day loss of 42 paise in more than one-and-a-half months. The rupee had previously closed near this level on November 20.

On a weekly basis, the domestic unit lost 45 paise.

Mr. Trump ordered the killing of Iran Revolutionary Guards commander Qasem Soleimani, escalating tensions in the strategic Gulf region.

Following US-Iran tensions, Brent futures, the global oil benchmark, soared 4.24% to $69.06 per barrel.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.