Mumbai - Arabstoday
India\'s rupee dropped for a third day on speculation a widening budget deficit will weigh on its credit rating, damping demand for the nation\'s assets. The currency touched a two-week low as crude prices climbed 0.9 per cent to $106.52 per barrel in New York. The budget deficit will be 5.9 per cent of GDP this fiscal year ending March 31, versus the official target of 4.6 per cent, the government said last Friday. Weak public finances are hampering credit rating, Moody\'s, Fitch and Standard and Poor\'s said the same day. \"The deficit is more in the open now and rating companies will be watching how much can India hike fuel prices\" to trim its subsidies, economist said Ramya Suryanarayanan. The rupee fell 0.5 per cent to 50.6580 per dollar in Mumbai.