5 Things To know About Rupee's Decline Against Dollar Today
1) Some analysts have raised concern about domestic inflation outlook and its impact on domestic economy after global oil prices surged to over two year highs. Ajay Bodke, CEO and chief portfolio manager at domestic brokerage Prabhudas Lilladher said, "India needs to keep a cautious eye on the surge in global crude prices as every $1 per barrel rise in crude prices leads to its import bill rising by $ 1.33 billion. Also, a rising import bill can put downward pressure on rupee."
2) Forex advisor IFA Global said the spike in global oil prices is likely to weigh on domestic stock markets and the rupee. The Sensex fell over 350 points on Tuesday while the index was flat in early trade today.
3) IFA Global expects the rupee to trade between 65/dollar to 65.25/dollar in the near term.
5) Higher global crude oil prices could also lead to prices of crude derivatives moving up impacting the raw material costs of companies across the sectors and leading to margin pressure. "An exuberant Indian equity market needs to digest the far-reaching implications of the grave geo-political developments unfolding in the Middle-East seriously," Mr Bodke said. (With Agency Inputs)
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