NEW DELHI (Sputnik) - The U.S. threat to end waivers on sanctions against the purchase of Iranian oil, previously accorded to selected countries including India, has started to pinch India, with its currency witnessing a slump of Rs 0.39 to a low of 70.25 against the U.S. dollar, according to a report in the Indian Express.
The media outlet quoted analysts opining that a mere 10 percent spike in crude prices could widen the Indian current account deficit situation by 0.40 percent.
This could result in a depreciation of India's rupee in the range of a whopping 3 to 4 percent. Inflation would also go up, the analysts further quoted in the media report.
International credit rating agency CARE Ratings did a detailed assessment report on the impact of the U.S.' anti-Iran sanctions after the sanctions waiver regime, which is expected to be effective from 3 May.
"Sustained increase in the price in the range of $70-75/barrel or higher can move the rupee down by 3-4% on an annual basis given that the dollar has already started strengthening in the world market", the report added.