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Rupee Declines To End At 71.93 Against Dollar As Crude Oil Price Rises
06 Jan 2020, 07:06 PM IST 
The rupee extended its losses to third straight day against the US dollar as crude oil prices surged
- The rupee ended at 71.93 against the US currency on Monday, down 13 paise compared with its previous close of 71.80.
- That marked the third day in a row when the rupee moved lower against the dollar, a period in which it lost a cumulative 71 paise against the greenback.
- Analysts expect some pressure on the rupee to continue against the greenback in the near term due to growing geopolitical tensions.
- Crude oil prices continued their sharp upwards momentum on Monday, with Brent futures - the global benchmark - jumping past the $70 a barrel mark.
- The gains extended Friday's more than 3 per cent surge after a US air strike in Iraq killed Iranian military commander Qassem Soleimani, heightening concerns about an escalation in conflict in the Middle East and the possible impact on oil supplies.
- US President Donald Trump has warned Iran of "major retaliation" if Tehran carries out any attack against America to avenge the killing of Soleimani and hinted at striking its cultural sites.
- Mr Trump's statement came hours after Iran announced it will no longer abide by the limits contained in the 2015 landmark nuclear deal.
- Domestic stock markets felt the brunt of surging crude oil rates. The S&P BSE Sensex index declined 787.98 points - or 1.90 per cent - to end at 40,676.63 in its worst single-day fall since July 8.
- India, the world's third-biggest oil consumer, imports about 80 per cent of its oil needs, making it highly susceptible to crude price swings.
- Foreign institutional investors (FIIs) offloaded a net Rs 1,263.05 crore from Indian capital markets on Friday, provisional data from the NSE showed.
