In early deals on Tuesday, the Indian rupee declined against the U.S. dollar as investors continued selling the rupee in response to Fitch downgrade of India's rating outlook.
Fitch Ratings on Monday cut India's rating outlook to Negative from Stable, citing heightened risks of potential deterioration in medium to long-term growth and limited progress on fiscal consolidation.
The sovereign rating was affirmed at 'BBB-'. The rating affirmation reflects India's diversified economy and its high domestic savings which reduce reliance on foreign investors for private investment and fiscal funding.
The rupee is now trading at 56.005 per dollar, compared to Monday's close of 55.91. The next near term downside target level for the rupee is seen at 56.2.
by RTT Staff Writer
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