Economics
For Asia’s Only Losing EM Currency, the Future Looks Even Bleaker
- Biggest risk for India is slowing growth, IDFC’s Pan says
- Moody’s cut nation’s credit outlook this month to negative
This article is for subscribers only.
India’s rupee is the only emerging Asian currency to weaken this quarter and its losses may gather pace as a report this week is forecast to show economic growth slid to a six-year low.
The rupee, which has slumped almost 5% from this year’s high in July, is also under selling pressure due to escalating levels of public debt and a credit crunch among non-bank finance companies, known as shadow banks. Moody’s Investors Service cut the country’s credit rating outlook to negative this month, saying the economic slowdown was deeper and longer than it anticipated.