Moody's India rating upgrade: Indian rupee may still depreciate

To maintain the country's competitiveness, the RBI might still want to see the rupee a little weak

The ratings upgrade by Moody’s will bring a new class of investors in the country, so far restricted by their investment mandate of not investing in countries below a threshold.

That should strengthen the rupee naturally, but it may not be desirable for the central bank.

To maintain the country’s competitiveness, the Reserve Bank of India (RBI) might still want to see the rupee a little weak vis-á-vis its export competitors, revealed a Business Standard poll of 10 senior treasury heads and economists.

That usually means the central bank will have to intervene in the market to keep the rupee weaker than its