Rupee tumbles 68 paise to 71.60 in early trade on sharp rise in crude prices; foreign fund outflow weighs on local currency
At the interbank foreign exchange, the rupee opened at 71.54 then fell to 71.60 against the US dollar, showing a decline of 68 paise over its previous closing.
-
Market participants were concerned as drone attack on Saudi Arabia's oil facilities has stroked fiscal slippage concerns
-
At the interbank foreign exchange, the rupee opened at 71.54 then fell to 71.60 against the US dollar
-
The Indian rupee on Friday had closed at 70.92 against the US dollar
Mumbai: The rupee tumbled by 68 paise to 71.60 against the US currency in early trade on Monday, as a sharp jump in global crude oil prices dampened investor sentiments.
#Rupee opens sharply lower as the ##AramcoAttack sent crude prices higher pic.twitter.com/uzj5Vez6m6
— CNBC-TV18 (@CNBCTV18Live) September 16, 2019
Related Articles
Forex traders said market participants were concerned as the drone attack on Saudi Arabia's oil facilities has stroked fiscal slippage concerns.
Crude oil prices witnessed a sharp spike after a weekend drone attack on Saudi Arabia cut into global energy supplies and halved the kingdom's oil production.
Saturday's explosions set off fires that engulfed the Abqaiq plant, the world's largest oil processing facility, and nearby Khurais, which hosts a massive oil field.
Representational image. Reuters.
Brent crude futures, the global oil benchmark, jumped 9.86 percent to $66.16 per barrel on Monday.
At the interbank foreign exchange, the rupee opened at 71.54 then fell to 71.60 against the US dollar, showing a decline of 68 paise over its previous closing.
The Indian rupee on Friday had closed at 70.92 against the US dollar.
Traders said weak opening in domestic equities and sustained foreign fund outflows also weighed on the domestic currency.
The 30-share index was trading 204.37 points or 0.55 percent lower at 37,180.62 and the broader Nifty fell 64.10 points or 0.58 percent to 11,011.80.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 405.45 crore on Friday, provisional data with the exchanges showed.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 percent to 98.17.
The 10-year government bond yield was at 6.64 percent in morning trade.
also read
Gold Rush: How jewellers are benefitting from RBI’s decision to withdraw Rs 2000 notes
The gold market in India is seeing a spurt in sales and it can thank the RBI for it. The central bank’s decision to withdraw the Rs 2000 note from circulation by 30 September has prompted people to buy more gold – with most stores reporting a 20 per cent rise in purchases
India scraps the Rs 2000 note: Will this affect the economy?
The Rs 2000 note will remain legal tender but citizens have been asked to deposit or exchange these notes by 30 September. Analysts say this time the move is expected to be less disruptive as a lower value of notes is being withdrawn over a longer period of time
Explained: How a US debt default would affect the global economy
The repercussions of a first-ever default on the US federal debt would quickly reverberate around the world. Experts say that 'no corner of the global economy would be spared'