Indian Rupee Settles 3 Paise Down at 71.11 Against the Dollar

Rupee slipped 3 paise to close at 71.11 against the dollar on 20th January 2020, tracking a steady increase in crude oil prices and weakness in the domestic equities.

Indian Rupee Settles 3 Paise Down at 71.11 Against the Dollar
Indian Rupee Settles 3 Paise Down at 71.11 Against the Dollar

On Monday, rupee was trading 3 paise down at 71.11 against the dollar due to rise in the prices of crude oil in the international market.

Foreign exchange rates goes up : 

On 20th January 2020, the closure of a Libyan oil field led to a rise of more than one per cent in crude oil prices. The army led by Libyan National Army military commander Khalifa Haftar has closed a pipeline in Libya. Due to this, it will take some time for the crude production to come back to normal level and also the supply of crude oil is expected to decrease.

At the same time, the dollar gained as the retail sales figures picked up in December. However, on the domestic front, no major economic data is expected to be released, but all the stakeholders who are related to the market are keeping an eye on the World Economic Forum meeting. As the meeting is going to take place this week.

Brokerage firm Motilal Oswal Financial Service said, "After the closure of two major crude oil production bases in Libya, the rupee may fall further due to the rise in crude prices. Today, the dollar-rupee exchange rate can trade in the range of 70.90 and 71.30. The dollar has risen against the world's major currencies as the dollar recovered home sales in the US in December and sales had jumped to 11.2 percent to a new high".