India's external sector outlook remains broadly manageable but faces rising risks from geopolitical developments in West Asia that could push up crude oil prices and widen the current account deficit (CAD), according to a recent research note by Yes Bank. The report noted that India recorded
The Indian rupee recovered on Thursday after hitting an all-time low of 92.31 against USD, though currency experts believe the domestic currency is likely to remain under pressure due to ongoing geopolitical tensions and elevated crude oil prices.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, on Wednesday stated that with crude oil prices remaining elevated, the rupee is likely to face continued depreciation pressures.
Asia remains the most vulnerable region globally to sustained increases in oil prices due to its heavy reliance on imported energy and high trade openness, asserted a report by Invesco headlined 'Middle East Tensions - Impact on Asia.'
West Bengal leader Dilip Ghosh on Wednesday expressed serious concern over the military escalation in the Middle East and underlined the long term impact of the joint US-Israel strikes and retaliatory strikes of Iran on the global economy and oil prices.
If the oil prices move higher it would be negative for Asian stocks, but if the ongoing conflict ends relatively quickly, any adverse impact on markets is likely to be short-lived, according to a report by Invesco.
Crude oil prices may surge above the USD 100 per barrel threshold if there is any structural disruption to oil infrastructure amid the ongoing military escalations in West Asia, according to a report by ICICI Bank.
The escalation of the Israel-Iran conflict, marked by the reported killing of Iran's Supreme Leader Khamenei, is set to impact Indian equity markets through trade flow disruptions and a spike in crude oil prices.
Brent crude prices have surged around 10 per cent amid escalating tensions in the Middle East following ongoing military confrontation between Iran and the United States after the killing of Iran's Supreme Leader Ayatollah Ali Khamenei.
Former Indian High Commissioner to Canada, Vikas Swarup, on Saturday termed US and Israel strikes on Iran as "a worrisome development" as it hampers India's interest in the Middle-East.