Business Standard

Friday, January 24, 2025 | 12:28 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

How rupee has been held hostage to a 70% surge in India's crude oil bill

Rising oil prices will probably see India's current-account deficit widen to 2.6% of gross domestic product this financial year

What are the reasons for the five-year high trade deficit in July
Premium

Subhadip Sircar & Saket Sundria | Bloomberg
Forget Turkey and Argentina. The Indian rupee’s real bugbear is the price of oil.

India’s currency had its worst month in three years in August as crude rallied on speculation sanctions on Iran will shrink global supplies. The crude import bill for the world’s fastest-growing oil user surged 76 percent in July from a year earlier to $10.2 billion. That pushed up the trade deficit to $18 billion, the most in five years.

“Dollar demand for crude heading into Iran sanctions is not helping with rupee pressures,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in