India’s rupee weakened to the lowest level in more than a month and bonds fell as a jump in oil prices once again exposed the nation’s vulnerability to spikes in energy costs. The currency slid as much as 0.8 percent to 69.8775 per dollar at 9:35 a.m. in Mumbai, set for the lowest level since March 11, while the yield on most-traded bonds due in 2028 surged six basis points to 7.62 percent.
TheS&P BSE Sensex index of equities lost 0.6 percent. “The surge in oil prices is the primary reason that is weighing on all asset classes,” said Harish Agarwal, Mumbai-based trader at FirstRand Bank Ltd. Elevated crude prices widen the country’s current-account deficit and stoke inflation,which muddies the outlook on interest rates, he said. Raed More
Latest posts by Bloomberg Quint (see all)
- Oil Jumps After OPEC Signals Intent to Continue Output Cuts - May 20, 2019
- Oil Rallies as Mideast Tensions Flare Over Saudi Pipeline Attack - May 17, 2019
- OPEC+ Grapples With Iran Crisis as Ministers Meet in Jeddah - May 16, 2019