You are here: Home » Finance » Money & Forex Markets » News
Business Standard

Rupee tumbles 20 paise against dollar after Iran attack on US bases in Iraq

At the interbank foreign exchange market, the rupee opened weak and slipped to the 72-mark

Rupee | Rupee fall | Iran Attack

Press Trust of India  |  Mumbai 

Rupee, Currency, Indian currency
Photo: Shutterstock

The tumbled 20 paise to 72.02 against the US dollar in opening trade on Wednesday as Mideast tensions flared up after Iran fired rockets at bases in Iraq.

Asian markets dived while oil prices firmed up after Iran fired more than a dozen ballistic missiles at two Iraqi bases with US personnel in retaliation to the killing of its top general Qassem Soleimani.

At the interbank foreign exchange market, the opened weak and slipped to the 72-mark against the greenback in early deals. The local unit had closed at 71.82 per dollar on Tuesday.

Global oil benchmark Brent crude futures shot up 1.32 per cent to $69.17 per barrel as investors fretted over supply disruptions following the escalation in US-Iran tensions.

Meanwhile, domestic equity markets opened on the back foot amid the rising geopolitical volatility. The 30-share BSE Sensex tanked 374.21 points to 40,495.26 in the opening session, while the broader NSE Nifty slumped 123.35 points to 11,929.60.

Foreign funds sold shares worth a net Rs 682.23 crore on Tuesday, provisional data showed. The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.10 per cent lower at 96.91.

On the domestic macroeconomic front, India's GDP growth has been projected to slump to an 11-year low of 5 per cent in the current fiscal, mainly due to poor showing by manufacturing and construction sectors, according to government data released on Tuesday.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, January 08 2020. 09:50 IST