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.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
