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

Aug 20 2013, 13:54 IST
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SummaryIndian rupee was trading at a record low of 63.69 to the dollar on Tuesday morning.

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.

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