homemarket Newscurrency NewsRupee plunges 64 paise as surging oil prices raise trade deficit worries

Rupee plunges 64 paise as surging oil prices raise trade deficit worries

The rupee opened lower against the US dollar on Monday, snapping a 7-day rally, as a rise in global crude prices weighed on the domestic unit. At 09:06 AM, the rupee was trading at 71.56 a dollar, down 64 paise from its Friday’s close of 70.92. The home currency opened at 71.57 and touched a high and a low of 71.56 and 71.67 a dollar, respectively.

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By Aastha Agnihotri  Sept 16, 2019 9:12:42 AM IST (Updated)

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Rupee plunges 64 paise as surging oil prices raise trade deficit worries
The rupee opened lower against the US dollar on Monday, snapping a 7-day rally, as a rise in global crude prices weighed on the domestic unit. At 09:06 AM, the rupee was trading at 71.56 a dollar, down 64 paise from its Friday’s close of 70.92. The home currency opened at 71.57 and touched a high and a low of 71.56 and 71.67 a dollar, respectively.

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India is the world’s third-largest oil importer. Higher crude oil prices put pressure on India's trade deficit and thus the rupee.
In the currency market, the dollar fell against the Canadian dollar and the Norwegian krone as investors took shelter under safe-havens following attacks on Saudi Arabian refining facilities.
The Canadian dollar rose 0.5 percent in morning trade in Asia to 1.3224 per dollar. The Norwegian krone rose almost 0.6 percent to 8.9363 per dollar. Against a basket of currencies the dollar was 0.2 percent lower at 98.053.
Japanese markets are closed on Monday for a public holiday.
In the commodity markets, oil prices surged more than 15 percent following the strikes on two plants, including the world’s biggest petroleum processing facility in Abqaiq.
Yemen’s Iran-aligned Houthi group claimed responsibility for the damage, but the US has pointed the finger directly at Iran, reported Reuters.
International benchmark Brent crude futures rose $7.06 a barrel or 11.7 percent from their New York close on Friday to stand at $67.28 per barrel by 0108 GMT
Foreign institutional investors (FIIs), who were net buyers for the past few sessions, offloaded shares worth Rs 405.45 crore on Friday, according to provisional exchange data.
In debt markets, the yields on the 10-year government bonds were down 0.41 percent at 6.64 percent from the previous close of 6.66 percent. Bond yields and prices move in opposite directions.

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