American Strike on Iran affect Rupee against US Dollar

January 3rd 2020: US President Donald Trump had ordered the killing of Iran Revolutionary Guards commander Qasem Soleimani, who died in Baghdad “in a decisive defensive action to protect US personnel abroad,” the Pentagon said. The Department of Defence said, “General Soleimani was actively developing plans to attack American diplomats and service members in Iraq and throughout the region. General Soleimani and his Quds Force were held accountable for the deaths of many American and alliance administration people and the injuring of thousands more. 

The U.S. had called the strikes in light of a rocket attack days earlier that had killed an American contractor working in Iraq. The Baghdad air terminal was hit in a volley of rockets soon after 12 PM Friday, Iraq’s military had reported. AFP was informed through the security forces that the bombardment hit a Hashed convoy and killed eight people, including “important figures.” Soleimani heads the Islamic Revolutionary Guard Corps’ Quds Force and also serves as Iran’s point man on Iraq.

This attack has affected the rupee to plunge by 42 paise to settle at a one-and-a-half-month low of 71.80 against the US dollar on Friday because of a spike in unrefined petroleum costs after US President Donald Trump ordered the strike on the Iranian administrator. On Thursday, the local unit had dropped by 16 paise to end at 71.38 against the US dollar. 

At the inter bank outside trade tower in Mumbai, the rupee opened at 71.56, at that point lost further ground to contact a low of 71.81 against the American cash. The Indian unit at last settled at 71.80 against the US dollar, logging its greatest single-day loss of 42 paise in more than one-and-a-half months. The rupee had recently shut close to this level on November 20. On a week by week premise, the residential unit lost 45 paise. Tailing the US-Iran strains, Brent prospects, the worldwide oil benchmark, took off 4.24% to $69.06 per barrel.

(Article source: The Hindu)