Indian Rupee Suffers from High Crude Oil Prices

The Indian rupee fell today on speculations that rising prices for crude oil will lead to widening of the country’s trade balance deficit. Such prospects hurt the appeal of the nation’s assets.
Prices for oil were rising due to the conflict in Iraq. Crude reached $114.69 per barrel on June 13, the highest price since September. India imports about 80 percent of crude oil it uses, meaning that the surge of prices should have a tremendous impact on its trade balance.
USD/INR was up from 59.7105 to 60.0850 as of 10:52 GMT today, reaching the high of 60.2900 intraday.

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