1. Rupee extends losses, falls 7 paise against US dollar as rising crude oil prices hurt sentiments

Rupee extends losses, falls 7 paise against US dollar as rising crude oil prices hurt sentiments

The Indian rupee extended losses on Wednesday and slipped by another 13 paise to 65.16 against US dollar in the early morning trade at the foreign exchange market.

By: | Published: November 8, 2017 10:58 AM
Yesterday, Indian rupee slumped by 35 paise to finish at a fresh one-week low of 65.03. (Image: Reuters)

The Indian rupee extended losses on Wednesday and slipped by another 13 paise to 65.16 against US dollar in the early morning trade at the foreign exchange market. Later in the trade, rupee partially recovered but still trading 7 paise lower at 65.10 per US dollar. Yesterday, Indian rupee slumped by 35 paise to finish at a fresh one-week low of 65.03 following the surge in the crude oil prices after political disturbance rose in Saudi Arabia.

The US dollar was a slim 0.07% lower at 94.843 against a basket of currencies, having again failed to clear resistance around 95.15, Reuters reported. The dollar declined to 113.75 yen from Tuesday’s 113.99 yen, AP reported. Brent crude which is used to price international oils tripped 14 cents or 0.22% to $63.55 in London. It lost 58 cents the previous session to close at $64.27.

Forex market sentiment endured a near-term crisis as nervousness took centre-stage stemming from a sharp spike in crude prices to the highest level since July 2015 as an anti-corruption purge launched by of Saudi Arabia’s crown prince stoked supply disruption fears, PTI reported. Yesterday’s slump of 35 paise was the biggest single-day fall in the Indian rupee since 26 September.

Indian stock markets opened marginally higher on Wednesday following a little softening in the crude oil prices and a continued optimism about the second-quarter corporate earnings. BSE Sensex gained 46.59 points or 0.14% to open at  33,417.35 points while NSE Nifty added 11.8 points or 0.11% to begin at 10,361.95 points. But within minutes of trading, Sensex swung into red led by a sharp decline in Bharti Airtel shares followed by the weakening in RIL and ICICI Bank. Soon after it regained the momentum and bounced back driven by the upsurge in the shares of Axis Bank. The benchmark Sensex jumped 113.94 points to hit the day’s high of 33,484.7 points. Earlier yesterday, the sell-off with an intention to book profits amid the rising crude oil prices led Sensex and Nifty losing up to 1%.

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