How will pressure on rupee, rising crude oil prices impact stock markets?
The Indian Rupee has slipped by 2.7 percent, from Rs 64.70 to Rs 66.46 per dollar
By
Prefer us on GoogleLast Updated: Apr 24, 2018, 18:34 IST1 min
Advertisement
Those looking to understand where India’s markets could trend in the next few months, might want to keep an eye on the rupee. India’s currency in the past month has been under relentless pressure, as rising crude oil prices will almost certainly result in the worsening of the current account. As a result, it has slipped by 2.7 percent, from Rs 64.70 to Rs 66.46 per dollar.
Advertisement
While it’s hard to say when and at what level foreign investors would start pressing the panic button, a further 5 percent fall would almost certainly prompt them to take some money off the table. At some point, these falls become self-fulfilling i.e. every decline in the rupee results in a fall in the market. The only thing that’s hard to predict: the quantum of the fall.
First Published: Apr 24, 2018, 18:34
Subscribe NowAfter studying law I vectored towards journalism by accident and it's the only job I've done since. It's a job that has taken me on a private jet to Jaisalmer - where I wrote India's first feature on
Advertisement