Strong finances, low debt to cap sovereign risks from rupee fall: Fitch

There is a downside to the fall in the value for the corporate and banking sector and it will add to existing pressures in the corporate and banking sectors

A recent sharp sell-off in the rupee will have limited impact on India’s sovereign credit profile due to relatively strong external finances, especially the low level of external debt. But there could be further bouts of pressure as global monetary tightening progresses.

There is a downside to the fall in value for the corporate and banking sector. It will add to existing pressures in the corporate and banking sectors, Fitch said in a statement.

The rupee has been among the emerging-market currencies affected by pressures from global monetary tightening and, more recently, contagion from the Turkey crisis. It has depreciated