Soaring Crude, Weak Rupee Put Pressure on India’s Forex Reserves
The RBI is having to to step in more often of late to support the rupee.
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Good morning...
I’m Ashutosh Joshi, with your mid-week dose of news and analysis ahead of the market open.
Asian equities are firm and oil has edged lower, suggesting investors are trying to look past near-term geopolitical uncertainty and find some stability in markets. That could give local shares the tailwind they need to extend a two-day rebound. Still, the near-term tone remains cautious. For an oil-dependent economy like India—and much of the region—crude holding just above $100 for an extended period risks weighing on growth and earnings. How policymakers respond is now top of mind for investors, with the Federal Reserve set to deliver its interest-rate decision later Wednesday.
In today’s newsletter, we explain why: