Societe Generale’s Kenneth Broux and co-authors highlight that the decline in Brent below $90 supports India’s terms of trade and coincides with stronger portfolio inflows into FAR‑eligible bonds and equities.

Rupee gains with Oil tailwind

"USD/INR trades below 94.00 for the first time since April and USD/MXN extends below 18.50 which has more to do with the rebound in stocks than slump in energy prices."

"The decline in Brent below $90/b is bolstering the terms of trade of India but has also been accompanied by a sharp improvement in portfolio flows."

"Together, those factors have helped deflate USD/INR below 94.00 for the first time since April."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.