The rupee on Friday opened 25 paise down at 71.62 against the US dollar following a spike in crude oil prices.

Brent crude futures jumped close to $3 on Friday to their highest since September after a US air strike killed key Iranian and Iraqi military personnel, raising concerns that escalating Middle East tensions may disrupt oil supplies.

The local currency on Thursday had settled 16 paise lower at 71.37 against the greenback.

Abhimanyu Sofat, Head of Research, IIFL Securities said, “Trump strikes on General Qassem Soleimani of Iran is a big escalation in middle east conflict from last decade. General is among the top three leaders from military perspective. His influence stretched from Yemen, Syria, Iraq. Expect crude to boil if Iran retaliates.”

Data from the US showed that economic activity in the US’ manufacturing sector continued to expand at a modest pace in December with the Manufacturing PMI coming in at 52.4 following November's reading of 52.6.

Published On : 02-01-2020

Source : Economic Times