After a steep 15 per cent fall in the rupee due to the rise in crude oil prices and foreign capital outflows earlier this year, the rupee has now bounced back 6 per cent. The last time the rupee closed below 70 was on August 24.
The dollar's weakness against some currencies overseas and easing crude oil prices, however, restricted the rupee fall, they added. Foreign investors pulled out Rs 2,040.54 crore from equity markets Wednesday, as per provisional data.
Foreign fund inflows also supported the domestic currency. On a net basis, foreign funds bought shares worth Rs 140.02 crore, while domestic institutional investors sold shares to the tune of Rs 343.11 crore Wednesday, provisional data showed.
"...most rated India-based corporates have protections in place - including natural hedges, some US dollar revenues and financial hedges - to limit the negative credit implications of a potential further 10 per cent weakening of the rupee to the US dollar...” Moody's VP said.