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Wednesday, April 14, 2021

Rupee trades near day’s low

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The Indian Telegraphhttps://theindiantelegraph.com.au/
Established in 2007, The Indian Telegraph is a multi award winning digital media company based in Australia.
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On January 2 the rupee fell 16 paise to end at 71.38 against the US dollar on the back of steady rise in crude oil prices and stronger dollar.

The Indian rupee extended morning losses and trading near the day’s low level at 71.69 per dollar, down 32 paise, with selling seen in the domestic equity market.

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It opened lower by 12 paise at 71.49 per dollar versus previous close of 71.37.

On January 2 the rupee fell 16 paise to end at 71.38 against the US dollar on the back of steady rise in crude oil prices and stronger dollar.

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The Sensex was down 166.60 points or 0.40% at 41460.04, and the Nifty was down 52.70 points or 0.43% at 12229.50.

“The rupee is under pressure today due to spike in the crude oil prices after Iran’s top general was killed in US airstrikes in Baghdad. There is a possibility that Iran might retaliate. Hence, the Geo political tension in the Middle East may rise further,” said Rushabh Maru, Research Analyst – Currency and Commodity, Anand Rathi Shares and Stock Brokers.

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“This may keep crude oil prices higher in the short term at least. This may lead to some panic dollar demand from importers. Markets are also awaiting further details regarding the trade deal between the US and China. Hence, the rupee may remain under pressure and it may weaken till 72-72.20 in the short term,” he added.

Oil prices jumped more than USD 1 on Friday after a US air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.Gold prices also inched up, on track to record a fourth consecutive weekly gain, as the dollar eased, while investors awaited the release of minutes from the US Federal Reserve’s December meeting.

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