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Indian rupee woes highlight economic drift

Ratings agency Standard and Poor's has cut India's credit outlook to negative. India s rupee, which hit an unprecedented string of all-time lows last week, is set for more falls unless policymakers move quickly to put Asia s third-largest economy back on track, analysts say. The rupee, which slumped to as low as 56.38 to the dollar last week, has lost around a quarter of its value in the past 12 months and is currently Asia s worst-performing currency. "The Indian rupee s weakness is a symptom and not the underlying problem", which is "policy incoherence, shifting global risk appetite and a comatose government", said Rajeev Malik, senior economist at independent brokerage CLSA. Ratings agency Standard and Poor s has cut India s credit outlook to negative, growth is slowing and the current account deficit -- the widest measure of a country s trade with the rest of the world -- is at a three-decade high. Prime Minister Manmohan Singh has admitted his squabbl...