Why Westpac’s Cheung Is Avoiding the Indian Rupee

The video discusses the impact of oil prices on India's economy, highlighting how changes in oil prices can significantly affect India's external balances and twin deficit. It also examines the influx of foreign investment into India amidst a low interest rate environment and the potential effects on the Indian rupee and sovereign bonds. The discussion extends to the expectations of policymakers, particularly in light of upcoming elections and potential rate cuts, emphasizing the importance of policy continuity and reforms for market stability.

How does a $10 change in oil prices affect India's external balances?

• It changes by 50%

• It has no effect

• It changes by 10%

• It changes by 25%

What is the current trend regarding foreign investments in India?

• Foreign investments are decreasing

• Foreign investments are increasing

• Foreign investments are stable

• Foreign investments are unpredictable

What is the expected short-term trend for the Indian rupee?

• No change

• Mild upward pressure

• Significant downward pressure

• Significant upward pressure

What is the expectation for India's interest rates in the near future?

• Interest rates will remain the same

• Interest rates will increase

• Interest rates will decrease

• Interest rates will fluctuate unpredictably

What is the potential impact of Modi's re-election on India's economic policies?

• It will cause economic instability

• It will have no impact

• It will lead to policy reversal

• It will ensure policy continuation