Rupee Slide Continues as Credit Rate Downgrades Loom

The rupee fell by almost 3% against the US dollar amid uncertainty over the Middle East and a gloomy forecast for economic growth this year.

Goldman Sachs cut its GDP growth forecast for India to 4% from 6%.

It also expects the rupee, Asia’s worst performing currency this year, to sink to 72 per dollar within six months.

Ratings agency Standard & Poor’s said that there was a more than one-in-three chance of a ratings downgrade for India within the next one to two years.

In the April-to-June quarter, India’s economy grew at a rate of 4.4%, compared with the same period in the previous year, the slowest quarterly expansion in four years.

August also saw India’s manufacturing sector shrink for the first time for four years.

via BBC

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