Economics

Rupee Declines for a Third Day Amid India Growth Concerns

  • ADB cuts India's FY16 GDP growth estimate to 7.4 percent
  • Currency is set for its biggest quarterly drop since 2013
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India’s rupee declined for a third day as a selloff in riskier assets deepened amid concern over Asia’s growth outlook.

Regional currencies slumped Wednesday with most equity markets retreating after a preliminary gauge of Chinese manufacturing sank to the lowest level since 2009, indicating that a slowdown in the world’s second-largest economy is worsening. Conflicting signals from the Federal Reserve on when it will start raising interest rates further curtailed demand for emerging-market assets. The Asian Development Bank cut its growth forecasts for the developing economies, including India, on Tuesday.