HEIGHTENING GLOBAL GEOPOLITICAL TENSIONS - SEEN FROM INDIA'S PRISM
- Credit Rating Agency in India
- Economy Overview
- HEIGHTENING GLOBAL GEOPOLITICAL TENSIONS - SEEN FROM INDIA'S PRISM
The surprise Israel-Palestine war has wide-ranging ramifications and repercussions across geographies, economies and sectors. There is volatility in the bond and equity market albeit temporarily. Bond yields will harden, cost of credit may go up for companies, crude price will rise if it spills over to the Middle East. There can be a sustained reduction in oil supply. Surging crude oil could impact domestic inflation and interest rates could remain persistently high for a prolonged period. The disconcerting mix of war risk, spurt in US bond yield to record highs and volatile crude support the safe-haven dollar. Technically, the greenback is still in an uptrend and the upcoming correction could be the normal retracement. Gold may become a safe haven.