The Indian rupee closed nearly flat against the dollar, supported by likely central bank intervention, despite Brent crude oil jumping 4% to over $98 a barrel. Geopolitical tensions in the Middle East, including Houthi attacks on Saudi tankers, fueled the oil price rally, pushing Brent towards the psychological $100 threshold. Elevated oil prices pose a significant risk for economies like India, threatening inflation, slowing growth, and widening current account deficits. For Pakistan, a sustained rise in crude oil prices could exacerbate imported inflation and put pressure on the USD/PKR exchange rate, potentially increasing local gold demand as a hedge.
بحوالہ / Source: www.brecorder.com