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Not Just Because of the War Economist Kaushik Basu Cautions as Rupee Falls to 96 25 531935 2026 05 18
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AI insight
AI-generatedThe Indian rupee's depreciation is driven by high crude oil prices and a stronger dollar, increasing import costs for oil and other commodities. This directly affects India's current account deficit and inflation, pressuring the RBI to intervene. The channel is fx_passthrough: a weaker rupee raises input costs for oil importers and other USD-denominated imports, squeezing margins for Indian companies reliant on imported raw materials.
Signals our AI researcher identified
Extracted by our AI model from this article and related public sources — not direct quotes from the publisher.
- Indian rupee fell to all-time low of 96.25 against USD on May 18, 2026.
- Rupee declined 11.2% over the past year.
- Brent crude rose to USD 111.26 per barrel.
- Dollar index at 99.32.
- Economist Kaushik Basu warns of rising inflation without intervention.
EM markets to underperform over 1-4 weeks as inflation fears persist; expected drop 2-5%.
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Sector impact at a glance
- EM_MARKETSmid
- EM_MARKETSshort
- FX_USDshort