In late afternoon deals on Monday, the Indian rupee declined to a 6-day low against the U.S. dollar after Standard & Poor's said in a report that India could lose its investment grade rating due to slow economic growth and political roadblocks to economic policymaking.
The rupee is now trading at 55.68 per dollar and if the Indian currency weakens further, it will target the 56 level. The dollar-rupee pair ended last week's deals at 55.375.
In a report titled "Will India Be The First BRIC Fallen Angel?", the rating agency said government's reaction to potentially slower growth and greater vulnerability to economic shocks could largely determine whether the country can maintain an investment-grade rating or become the first "fallen angel" among the BRIC nations.
by RTT Staff Writer
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