Markets

Rupee tanks 24 paise to 71.62 against U.S. Dollar in early trade on rising crude price

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Representational image   | Photo Credit: V. Sudershan

Forex traders said crude oil prices surged after U.S. President Donald Trump ordered the killing of Iran Revolutionary Guards commander Qasem Soleimani

The rupee depreciated by 24 paise to 71.62 in early trade on Friday weighed by the spike in crude oil prices, after U.S. President Donald Trump ordered deadly strike on Iran Revolutionary Guards commander.

Forex traders said crude oil prices surged after Mr. Trump ordered the killing of Iran Revolutionary Guards commander Qasem Soleimani.

The U.S. had called the strikes in response to a rocket attack days earlier that had killed an American contractor working in Iraq.

At the Interbank Foreign Exchange, the rupee opened on a weak note at 71.56 then fell further to 71.62 against the U.S. Dollar, showing a decline of 24 paise over its previous closing.

On Thursday, the rupee had settled at 71.38 against the U.S. Dollar.

“General Soleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region. General Soleimani and his Quds Force were responsible for the deaths of hundreds of American and coalition service members and the wounding of thousands more,” the Department of Defence said.

The global benchmark, brent crude oil was trading at $68.20 per barrel, higher by 2.94%.

Besides, muted opening in domestic equities also dragged the local unit.

Meanwhile, domestic equity market opened on a negative note. The 30-share BSE benchmark Sensex, was trading at 41,553.50, down 73.14 points in early trade. The wide-based Nifty was also trading lower by 44.15 points at 12,238.05.

Foreign funds purchased shares worth Rs 688.76 crore from the capital markets on a net basis Thursday, provisional data showed.

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Printable version | Feb 17, 2020 2:40:44 PM | https://www.thehindu.com/business/markets/rupee-tanks-24-paise-to-7162-against-us-dollar-in-early-trade-on-rising-crude-price/article30467663.ece

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