Rupee drops 29 paise to 72.49 against US dollar
Business | September 24, 2018 9:38 ISTThe domestic unit had ended 17 paise higher at 72.20 against the dollar Friday
The domestic unit had ended 17 paise higher at 72.20 against the dollar Friday
The uptrend was mainly aided by the dollar's weakness against some currencies overseas on easing trade war concerns and a higher opening of the domestic equity market .
Oil refiners such as state-owned Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals Ltd (MRPL) could use UCO Bank or IDBI Bank to route oil payments to Iran, the official added.
Snapping its two-day decline, the rupee opened higher at 72.71 against its record closing low of 72.98 Tuesday and touched a session high of 72.34 in day trade as crude oil prices eased globally.
A higher opening in the equity market supported the recovery in the rupee.
Since Monday, the rupee has plunged by 114 paise or more than 1.5 per cent as trade war concerns resurfaced and crude oil rebounded.
The BSE benchmark Sensex recovered by 74.68 points, or 0.19 per cent.
“The depreciation will obviously raise the prices of imported goods such as oil and petroleum products, potentially putting an upward pressure on inflation,” said IMF spokesperson.
On Friday, the rupee had gained 34 paise to close at a one-week high of 71.84 against the US dollar.
The Indian rupee on Friday closed at 71.85, recovering 34 paise from its previous close of 72.19 per greenback.
The rupee on Wednesday rebounded from the historic low of 72.91 to end higher by 51 paise at 72.18 against the dollar.
The rupee had crashed to an all-time low of 72.91 in morning trade tracking higher crude oil prices that increased concerns of widening trade deficit at home.
This was a biggest single session decline against the US dollar since August 13.
The rupee on Monday had slumped to new record low of 72.67 a dollar in intra-day trade before closing at 72.45.
The other highest centres include Nanded where petrol sold at Rs 89.78 per litre and diesel at Rs 77.75 and Amravati at Rs 89.46 and at Rs 78.69 respectively.
Forex dealers said besides strong demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency.
Finance Minister Arun Jaitley on Wednesday attributed the fall in rupee to global factors and stressed that the domestic unit was better off as compared to other currencies.
Earlier, the rupee resumed higher at 71.43 against Tuesday's closing level of 71.58 a dollar.
In New Delhi, petrol prices were hiked by 16 paise to trade at Rs 79.31 per litre, while diesel is being sold 19 paise higher at Rs.71.34 per litre.
On Friday, the rupee had plunged by 26 pise, or 0.37 per cent, to a record low of 71 against the US currency due to worsening macroeconomic factors and heavy month-end dollar demand from importers.
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