Trade gap blowout, pricier crude oil give hope to hibernating rupee bears

'A larger commodity bill - mainly oil - could deteriorate the trade balance anew,' said Radhika Rao, an economist at DBS Bank in Singapore

Trade gap blowout, high crude price give hope to hibernating rupee bears

By Bloomberg

January 18

The blowout in India’s trade gap to its worst in three years and higher prices of crude, the nation’s biggest import item, are giving ammunition to rupee bears - many of whom have been hibernating for some time.

The rupee closed at 63.89 against the dollar on Wednesday. The domestic currency opened lower at 64.08 against Tuesday's closing level of 64.04 at the inter-bank foreign exchange. It fell to the lowest in almost three weeks early on Wednesday, despite foreign flows into India's record-breaking stock market and a