India is among the 5 countries which are least vulnerable to currency pressures amid strengthening of the US dollar, because of low dependence on external capital inflows, Moody’s Investors Service said on Thursday.
In a report on the impact of strengthening of the US dollar on other
sovereigns, Moody’s said the appreciation of USD has prompted a sharp currency depreciation and/or a significant decline in forex reserves in a number of emerging and frontier markets.
However, India, China, Brazil, Mexico and Russia are among the “least vulnerable” to currency pressures, it said.
“large savings channelled through the financial sector allows these economies to largely fund themselves domestically, thereby lowering exposure to volatile portfolio flows,” Moody’s said.