Moody’s says factors underpinning Indian rupee fall part of Baa3 rating

Indian rupee was trading at a record low of 63.69 to the dollar on Tuesday morning.

Written by Reuters | Mumbai | Published: August 20, 2013 11:53 am

Moody’s India sovereign rating of Baa3 incorporates macro-economic challenges of weaker growth,a fall in the rupee and the twin deficits,credit ratings analyst Atsi Sheth said on Tuesday.

“So while (the) rupee depreciation may be a new development,the factors that underpin it are not,and have been incorporated into India’s Baa3 rating,” Sheth said in an e-mailed response to Reuters.

For India to meet the fiscal deficit target will be “very challenging” this year,Sheth added,citing lower-than- anticipated growth and a steep fall in the rupee.

The rupee was trading at a record low of 63.69 to the dollar on Tuesday,as it continued to be most vulnerable to the exodus of foreign capital.

For all the latest Business News, download Indian Express App

    Live Cricket Scores & Results