Syria, oil, India, and currency

Kashmiri pedestrians walk past a stall selling wedding garlands made from Indian rupee notes at a market in Srinagar on August 28, 2013. India's rupee slumped nearly four percent to a fresh record low against the dollar as concerns about a US-led military strike against Syria compounded deepening domestic economic woes.

With the United States and allies said to be considering a military strike against Syria, oil prices are up sharply again today -- with the Texas benchmark up 1.4 percent to $110-150 a barrel. Higher oil prices are hurting emerging markets, where the Indian currency fell to a record low today, deeping the worst economic crisis there in 20 years. In the U.S., where some kind of economic recovery was in progress, what will higher oil prices mean? Julia Coronado, chief economist-North America for BNP Paribas in New York, explains it all.

About the author

Julia Coronado is chief economist at BNP Paribas.

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