INR opens at 71.30 as against yesterday’s close of 70.97 as Moody’s downgraded India’s credit outlook from stable to negative. Slowing Economy and sagging tax collection were already known to the market and it was just a matter of time before any rating agency commented on it.
Please note that Moody’s has just downgraded the outlook and not rating. Therefore damaging impact would be limited. CNY trading below 7.0 would also offset some weakness in INR and therefore range for the day could be 71.10-71.40
Sharing below historical movement of India rating by Moody’s.