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Rupee Falls Over 1% Against Dollar As Crude Oil Rates Soar: 10 Points

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Rupee dollar exchange rate: At 2:41 pm, the rupee traded 0.74% lower at 71.45 against the dollar The rupee depreciated by as much as 75 paise - or 1.06 per cent - against the US dollar hurt by soaring crude oil prices.

After opening at 71.57 against the greenback, down 64 paise compared to the previous close, the rupee declined to 71.67 at the day's weakest point.

Analysts say the sharp rise in crude oil prices following drone attacks on Saudi Aramco oil facilities hurt the rupee in the domestic forex market, stoking concerns about the twin deficits.

At 2:41 pm, the rupee traded 52 paise - or 0.74 per cent - lower at 71.45 against the US currency.

Here are ten things to know about the movement in the rupee against the US dollar (INR vs USD) today:Crude oil prices soared with the Brent crude futures clocking their best single-day percentage jump since January 14, 1991.

Brent crude futures - the global benchmark for crude oil - gained 19.5 per cent to $71.95 per barrel at the day's highest level. The attack on Saudi Arabian oil facilities on Saturday shut about 5 per cent of global supply, pushing international oil prices higher. Saudi Arabia is the world's biggest oil exporter and the attack on state-owned producer Saudi Aramco's crude processing facilities at Abqaiq and Khurais have reduced output by 5.7 million barrels per day. Any increase in crude oil prices puts inflationary pressure on India, which meets more than 80 per cent of its oil requirement through import.Weakness in domestic equity markets, with the S-P BSE Sensex index plunging more than 350 points during the session, also put pressure on the rupee.The jump in crude oil prices has led to the steep depreciation in the rupee, according to analysts.“Saudi Arabia has assured that normalcy will resume soon but there is a risk of military response from Saudi Arabia.

The geopolitical tension may escalate in the Middle East.

Hence, higher crude oil prices may have negative impact on Indian market,” Rushabh Maru of Anand Rathi told TheIndianSubcontinent.Foreign institutional investors pulled out a net Rs 405.45 crore from the country's capital markets on Friday, provisional data from the NSE showed. The dollar index - which gauges the movement in the US currency against six peers - was steady, and was last seen up 0.02 per cent. The 10-year government bond yield jumped as much as 1.20 per cent to 6.72 per cent on Monday, and was last seen trading at 6.71 in late afternoon deals.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.

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