• Even as the rupee fell below the 69 level intra-day against the dollar, global rating firm Moody’s has said India is among the least vulnerable to currency pressures because of its low reliance on external capital inflows.

• According to Moody's, India’s low dependence on foreign currency borrowing to fund its debt burden limits the risk of currency depreciation transmitting into materially weaker debt affordability.

• A large and relatively stable domestic financing base for government debt contributes to the economy’s resilience by sheltering it from abrupt changes in external financing conditions.
• Although India’s current account deficit has widened, driven in part by the recent rise in oil prices, it remains modest relative to GDP and is largely financed by equity inflows, including foreign direct investment.
• India’s significant build-up of foreign exchange reserves in recent years to all-time highs provides a support buffer to help mitigate external vulnerability risk, said Moody's.
• Overall India’s EVI (external vulnerable indicator) of about 74 per cent this year reflects relatively low external vulnerability.

The Hindu, Indian Express.