Rupee falls to all-time low against US dollar
Notably, the rupee dropped to 85.0650 against the US dollar in early trade, compared to 84.9525 on Wednesday.
Following Union government’s data which showed no major impact of demonetisation, Fitch on Tuesday said the Indian economy will grow at 7.1 in the current financial year and 7.7 per cent in the next financial year.
“Indian economy to grow by 7.1 per cent in current fiscal, 7.7 per cent in 2017-18,” Fitch report stated.
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The global rating agency had earlier predicted that Indian Gross Domestic Product (GDP) will grow 6.9 per cent in the current financial year (FY16-17).
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“Fitch now expects Indian GDP to grow by 7.1% for FY16-17, before picking up to 7.7% in both FY17-18 and FY18-19,” the report said.
According to government data released on February 28, the Indian GDP growth for the quarter ended December 31, 2016 (Q3 FY16-17) was 7 per cent which is better than expected.
However, the International Monetary Fund (IMF) in a report last month has predicted that India’s GDP growth will go down due to temporary disruptions caused by the Union government’s demonetisation drive.
“Growth is projected to slow to 6.6 per cent in financial year 2016-17, and then rebound to 7.2 per cent in financial year 2017-18, due to temporary disruptions, primarily to private consumption, caused by cash shortages,” the IMF said.
The government announced demonetisation or note ban of Rs.500 and Rs.1,000 notes on November 8 midnight to curb black money and terrorism and promote digital transactions.
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