INDIA RUPEE-Renewed oil surge pummels Indian assets, pushes rupee to record low

Reuters
03/12
INDIA RUPEE-Renewed oil surge pummels Indian assets, pushes rupee to record low

Rewrites throughout, adds details and analyst comment

By Jaspreet Kalra

MUMBAI, March 12 (Reuters) - Indian assets dropped on Thursday and the rupee fell to a record low, as a fresh surge in crude oil prices reignited worries over the economic impact from energy supply disruptions even as the currency's fall was cushioned by central bank intervention.

Brent crude oil prices LCOc1 climbed to $100 per barrel as Iran stepped up attacks on oil and transport facilities across the Middle East, warning the world to brace for oil at $200 a barrel.

The rupee INR=IN fell 0.3% to 92.3575, eclipsing its previous lifetime low of 92.3475 hit earlier in the week.

India's benchmark equity index Nifty 50 .NSEI fell about 1%, the yield on the benchmark 10-year bond rose 4 bps, and the rupee averted a fresh record low largely on the back of central bank intervention, traders said.

Asian currencies weakened across the board, while MSCI's gauge of regional stocks fell more than 1.5%.

"We expect the RBI to intervene in 92.30-92.35. However if Brent continues to remain elevated for a couple of sessions, the RBI may have to let the rupee go," said Abhishek Goenka, chief executive at FX advisory firm IFA Global.

(Reporting by Jaspreet Kalra; Editing by Sumana Nandy and Sherry Jacob-Phillips)

((jaspreet.kalra@thomsonreuters.com; +91-8769636545;))

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