While most of Asia cheered the truce between the U.S. and China, India’s rupee, bonds and stocks retreated amid the biggest surge in oil in two years, highlighting the nation’s vulnerability to spikes in energy costs.
The rupee was the only emerging-market Asian currency that weakened Monday as Brent prices rallied 6.2 percent to $62.4 per barrel. Further gains might outweigh the rub-off effect of the trade war truce on oil-buying countries including India, Indonesia and the Philippines.
“The Indian rupee stands to benefit less from this as India is not as reliant on exports, and the bounce in oil prices could also weigh on the currency,” said Khoon Goh, head of research at Australia & New Zealand Banking Group Ltd. in Singapore. Read More
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