Rupee slumps 87 paise at 73.38 against USD, gold falls Rs 138

Mumbai, Mar 30 (PTI): The rupee slumped by 87 paise to close at 73.38 (provisional) against the US currency on Tuesday as rising crude oil prices and a strong American currency weighed on investor sentiment.
At the interbank forex market, the local unit opened at 72.85 against the greenback and traded in the range of 72.77-73.47 during the day.
The rupee finally ended at 73.38 against the American currency, registering a fall of 87 paise over its previous closing.
On Friday, the rupee had settled at 72.51 against the American currency. The forex market was closed on Monday on account of Holi. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.20 per cent to 93.12.
“Indian Rupee depreciated amid strong dollar and rise in crude oil prices. Dollar gained strength amid surge in US treasury yields. Yields jumped on expectation that rollout of COVID-19 vaccines and government stimulus efforts will accelerate economic growth and inflation,” said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
Additionally, the rupee slipped on concern over rising COVID-19 cases in India. However, a sharp fall was prevented on rise in risk appetite in the domestic market. Rupee may trade in the range of 72.70 to 73.60 in next couple of sessions, Mukadam noted.
Gold dipped by Rs 138 to Rs 44,113 per 10 gram in the national capital on Tuesday amid decline in global precious metal prices, according to HDFC Securities.
In the previous trade, it had closed at Rs 44,251 per 10 grams.
Silver also declined Rs 320 to Rs 63,212 per kg, from Rs 63,532 per kg in the previous trade.
In the international market, gold was trading lower at USD 1,698 per ounce and silver was flat at USD 24.49 per ounce.
HDFC Securities Senior Analyst (Commodities) Tapan Patel said, “Gold prices witnessed selling with COMEX (New York-based commodities exchange) gold falling to two weeks low on stronger dollar.”