Weak rupee to have limited effect on sovereign rating of India: Fitch

Depreciation of the rupee against the dollar will have limited impact on sovereign ratings of India, even as pressure on the corporate and banking sectors is likely to increase, Fitch Ratings said on Monday.

There could be further bouts of pressure on markets as global monetary tightening progresses, it said.  The impact on the ratings would be limited by the country's relatively strong external finances, especially the low level of external debt. 

Currency depreciation could nevertheless add to existing pressures in the corporate and banking sectors, it added.

The rupee has been among the emerging-market currencies affected by pressures from global monetary tightening