Indian rupee, bonds retreat as oil prices rise above $110
MUMBAI (Reuters) – Indian bond yields edged up on Monday while the rupee weakened as an uptick in crude oil prices fanned fears of imported inflation and higher trade and current account deficits.
Oil prices jumped more than $3 on the day, pushing global benchmark Brent to above $111 a barrel as European Union nations considered joining the United States in a Russian oil embargo, while a weekend attack on Saudi oil facilities caused jitters.
India imports more than 80% of its oil requirements and the rise in crude prices can push up the country’s trade deficit and weaken the rupee while also increasing imported inflation.
