USD/INR corrects from six-month highs near 75.50 even as Fitch cuts India’s GDP forecast
|The US-based ratings agency, Fitch Ratings, in its latest report, said that “we further lowered India's GDP forecast for the fiscal year ending March 2022 (FY22) to 8.7% from 10.0% in June as a result of the severe second virus wave.”
Key takeaways
But high-frequency indicators pointed to a strong rebound in the second quarter, as business activity returned to pre-pandemic levels.”
“Raised the FY23 forecast to 10%, from 8.5%, in view of the sharp recovery.”
“Kept the country's rating unchanged at BBB-minus with a 'negative' outlook.“
"The impact of the second wave of the pandemic was to delay, rather than derail, India's economic recovery.”
Market reaction
USD/INR keeps its corrective decline from six-month tops of 75.54 intact, as it currently trades at 75.22, down 0.21% on the day. The rupee stands resilient to the GDP forecast downgrade by Fitch Ratings.
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