The Declining Rupee: India's Currency Struggles

Moody's reported the Indian rupee has depreciated by 5% in two years and 20% in five years, ranking among the weakest in South Asia. Of 23 rated companies, only six face dollar vulnerability, mitigated by factors. These include oil companies, UltraTech Cement, Bharti Airtel, and ANI Technologies.

Moody's Investor Service announced on Thursday that the Indian rupee has depreciated by around 5% over the last two years and has plummeted 20% over the past five years, positioning it as one of the weakest currencies in South and Southeast Asia.

Out of the 23 rated Indian companies, Moody's identified only six that are at risk due to the dollar's strength. However, these entities, including three oil refining and marketing firms, Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation, are supported by sufficient mitigating factors.

Other companies identified are building materials producer UltraTech Cement, telecommunications giant Bharti Airtel, and ride-sharing company ANI Technologies Pvt Ltd. The rupee's 5% depreciation over two years and over 20% drop since January 2020 underscores its fragile standing in the region, Moody's noted in its report focused on emerging markets in South and Southeast Asia.