India’s RBI Steps Up Support for Rupee, Bonds as Oil Tops $100

Crude oil has surged above $100 a barrel, raising the risk of higher inflation and increasing pressure on government finances. The Reserve Bank of India is likely to intervene more actively in currency and bond markets, which could heighten FX volatility and put upward pressure on sovereign yields and borrowing costs.

Analysis

Crude oil has surged above $100 a barrel, raising the risk of higher inflation and increasing pressure on government finances. The Reserve Bank of India is likely to intervene more actively in currency and bond markets, which could heighten FX volatility and put upward pressure on sovereign yields and borrowing costs.