Rupee plunges 14 paise to settle at 83.96 against $ as crude oil boils

Mumbai: Rupee depreciated 14 paise to settle at 83.96 (provisional) against the US dollar on Thursday, as volatile geopolitical situation triggered a surge in crude oil prices and weighed down by a steep fall of over two per cent in domestic equity markets.

According to forex traders, a strong American currency and unabated outflow of foreign funds fuelled by the bullish Chinese markets also accelerated the rupee's slide.

At the interbank foreign exchange, the local unit opened at 83.91 and touched the low of 83.97 against the greenback during intra-day. The unit ended the session at 83.96 (provisional) against the American currency, registering a steep loss of 14 paise from its previous closing level.

On Tuesday, the rupee settled 3 paise lower at 83.82 against the American currency. Forex markets were closed on Wednesday on account of Mahatma Gandhi Jayanti.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.23 per cent to 101.91.

Brent crude, the international benchmark, climbed 1.66 per cent to $75.13 in futures trade. Experts attributed the spike in crude prices to fear of Israel's retaliatory attacks on Iran's oil installations amid escalating tension in the Middle East.