The Indian Rupee has fallen for a third consecutive day against the US Dollar, extending its longest losing streak in a month after credit rating agency Moody’s Investor Services slashed its rating for the Bank of India.
Moody’s downgraded the Bank’s debt rating from Baa2 to Baa3 yesterday and sent the outlook on its financial strength down from D+ to D- and cut its rating from stable to negative. Moody’s went on to cite that the slowdown in the Indian economy and the recent troubles with the Rupee were the main causes for the cut. Another major credit ratings agency, Standard and Poor’s also warned that it is likely to cut its own rating for India if things do not improve over the next two years.
Earlier in the session the Rupee fell by 37 paise to trade in the region of 62.60 against the Dollar. The currency has also declined against the majority of its most traded peers after a decline in global stocks sparked investors to avoid riskier assets.
“All the major Asian currencies were seen trading weaker against the US Dollar and global stock markets were down,” said Abhishek Goenka, CEO of India Forex Advisors. “Negative stock markets continued to put pressure on the Rupee.”
Also weighing upon the Indian currency was renewed speculation as to when the US Federal Reserve will choose to begin tapering its monetary easing programme after the US Central Bank chose to maintain the stimulus measures at last week’s policy meeting. Federal Reserve Bank of St Louis President James Bullard hinted that the Fed could make a small stimulus cut when it gathers for its next policy meeting in October.
Current Rupee (INR) Exchange Rates:
The Pound Sterling/ Indian Rupee Exchange Rate is currently in the region of: 100.1568
The US Dollar/Indian Rupee Exchange Rate is currently in the region of: 62.6001 >
The Australian Dollar/Indian Rupee Exchange Rate is currently in the region of: 58.7840 <
The New Zealand Dollar/Indian Rupee Exchange Rate is currently in the region of: 51.9357
(Correct as of 09:45 am GMT)