The Indian rupee hit a
record low past the 94-per-dollar mark on Friday, hammered by
worries that the energy supply crisis sparked by the Middle East
war will drag on, deepening the pressure on energy importing
economies.
The Indian rupee hit a
record low past the 94-per-dollar mark on Friday, hammered by
worries that the energy supply crisis sparked by the Middle East
war will drag on, deepening the pressure on energy importing
economies.
The rupee fell to 94.1575 per dollar, eclipsing its
previous all-time low of 93.98 hit earlier this week. It has
declined about 3.5% since the war began late last month.
The threat of a protracted energy shock has kept oil prices
above the $100-per-barrel mark, weighing on global equities and
sending bond yields higher.
Analysts have shaved growth forecasts for India, with some
also anticipating rate hikes by the Reserve Bank of India over
the next 12 months as the spillovers from the crisis threaten to
lift inflation.
Even if a lengthy conflict is avoided, Bernstein sees a
realistic chance of the rupee breachingthe 98-per-dollar level
this year, with pressure primarily stemming from India’s current
account balance.