Dependence on domestic debt aids rupee slide, says Moody's

Financial systems are stronger than at the time of the 'taper tantrum' in 2013

Low dependence on foreign currency borrowing will help India in the face of the rupee's depreciation, says Moody's Investors Service.

In the Asia-Pacific region, it says, the rupee "has been worst hit, with a depreciation of over seven per cent, year-to-date, mainly on global developments".  Although India's debt affordability is weak, a feature that distinguishes it from other emerging markets is the predominance of local currency-denominated borrowing in its overall debt profile (96 per cent of the total). This limits fiscal risk to a large extent, the rating agency said. 

The median foreign-currency funding component for Asia-Pacific economies is a little over