Mumbai, Nov 8 (IANS): Mirroring the equity markets, the rupee fell sharply on Friday over the fresh growth concerns post Moody's lowering of nation's rating outlook to negative from stable. The rupee weakened by 32 paise to Rs 71.28 a US dollar from its Thursday's close of 70.96.

The rupee had earlier benefited in the recent weeks from strong inflow of foreign funds and better-than-expected quarterly earnings after the corporate tax cut.

"Moody's decision to change its outlook is a matter of concern, but it is unlikely to have a major impact on the rupee in the near term. There is a lot of optimism on the trade deal between the US and China. This may provide relief to the rupee," said Rushabh Maru of Anand Rathi Shares.

Moody's said that its decision to change India's sovereign outlook to negative reflects increasing risks that economic growth could remain materially lower than in the past, partly reflecting lower government and policy effectiveness at addressing long-standing economic and institutional weaknesses than it had previously estimated.

Maru said the domestic and global equities remain strong. This may also support the rupee. Focus will now shift to India's macroeconomic data to be released next week. In the near term, the rupee may trade in the range of 70.80 and 71.60, he said.

--IANS

ravi/prs