Trump victory: The effect on crude oil and the Indian rupee

Team BL Updated - November 07, 2024 at 03:27 PM.

Trump’s policies on trade have tended to strengthen the US dollar in the past

(file photo) The Indian rupee dipped to its all-time low of 84.3650 versus the U.S. dollar November 7. | Photo Credit: PRIYANSHU SINGH

The Indian rupee dipped to its all-time low of 84.3650 versus the U.S. dollar November 7, in the wake of expectations that Donald Trump’s victory is likely to boost the dollar in the coming months, according to a Reuters report.

The benchmark 10-year bond was quoted at 99.9875 rupees, with the yield marginally down at 6.7906% as traders awaited the Federal Reserve’s monetary policy decision, expected later in the day.

Trump’s policies on trade have tended to strengthen the US dollar in the past. This leads to weakness in the Indian rupee. It also means that capital will flow to areas with a strong currency. This could mean outflows from India, which could weaken the rupee’s further.

Earlier in the day, a businessline article said that crude oil futures traded higher on Thursday morning as the market continued to analyse the impact of Donald Trump’s victory in the US Presidential election.

At 9.55 am on Thursday, January Brent oil futures were at $75.44, up by 0.69 per cent, and December crude oil futures on WTI (West Texas Intermediate) were at $72.14, up by 0.63 per cent.

November crude oil futures were trading at ₹6096 on the Multi Commodity Exchange (MCX) during the initial hour of trading on Thursday against the previous close of ₹6,075, up by 0.35 per cent, and December futures were trading at ₹6070 against the previous close of ₹6051, up by 0.31 per cent, the article noted.

Published on November 7, 2024 08:04

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