In the last two years, the rupee has fallen by only five percent, but has fallen by 20 percent since January 2020

New Delhi: Indian currency has fallen by about five percent in the last two years and 20 percent in the last five years, which has become one of the weakest performing currencies in South and South-East Asia. The price of the rupee is steadily decreasing against the US dollar. Recently, the rupee fell to a low of Rs 86.70 per dollar. Rating agency Moody’s Ratings said that there is a lot of concern in the financial world about this.

Moody’s has assessed 23 companies in India to understand the impact of the fall in the price of the rupee. Based on that, Moody’s found that only six of these companies are being affected by the dollar firmly. However, Moody’s said in its report that these companies also have factors to reduce the crisis. These companies involved in the assessment of Moody’s include Bharat Petroleum Corporation, Hindustan Petroleum Corporation, Indian Oil Corporation, UltraTech Cement, Bharti Airtel and ANI Technologies. In the last two years, the rupee has fallen by only five percent, but since January 2020 it has fallen by more than 20 percent.

Moody’s said this in its report on emerging market companies in South and Southeast Asia. Thus it became the weakest performing currency in South and South-East Asia. This assessment of the rating agency refutes the prevailing perception in many fields that the Indian currency has performed better than other currencies amidst the strength of the dollar.

Moody’s Ratings said in its Asia-Pacific 2025 Outlook that India’s fiscal status will continue to affect its credibility in 2025, but it can benefit from changing trade and investment flow from China.

India’s fiscal status will also be an obstacle in its debt capacity in 2025. It is expected that fiscal consolidation will be gradual and the credit for BAA rated counterparts will be above an average of 57 percent.

Trade barriers imposed by the US will weaken economic production throughout the region. Despite the revenue growth in recent years, we estimate that the credit strength will also be much weaker than the ‘rated’ counterparts.