Rupee opens 50 paise down at 71.31 against dollar

The rupee opened 50 paise down at 71.31 against the dollar following rise in crude oil prices, mounting trade worries and sustained dollar demand from banks and importers.

The local currency on Friday gained 8 paise to end at 70.82 against the US dollar.

Oil prices gained after Opec and some non-affiliated producers agreed on a supply cut of 1.2 million barrels per day (bpd) from January.

Despite this, the outlook for next year remains muted on the back of an economic slowdown.

International Brent crude oil futures were at $62.21 per barrel at 0218 GMT, up 54 cents, or 0.9 percent, from their last close.

Prices surged on Friday after the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000 bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group.

Indias current account deficit widened to $19.1 billion in July-September, a five-year high against $6.9 billion in the year-ago quarter and $15.9 billion in April-June. The CAD in second quarter of this fiscal year stood at 2.9 per cent of GDP, against 1.1 per cent in the year ago period and 2.4 per cent in the previous quarter.

For Indian elections, exit polls of five states that went to polls recently showed mixed outcome for incumbent federal government. The final results are due starting tomorrow.

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