Rating down, market down, dollar up.

"Rating agency Fitch on Tuesday (1 August) downgraded the US government's top credit rating, a move that drew an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago." Reuters. "Fitch downgraded the United States to AA+ from AAA." "More than a decade ago, John B Chambers and his colleagues at Standard & Poor's made a momentous decision: They were going to strip the United States of its cherished AAA credit rating." npr. "On the first day of trading after the announcement, the Dow Jones Industrial Average dropped by more than 600 points, and the Nasdaq closed 6.9% lower. Markets hadn't had a day that bad since the Global Financial Crisis." Naturally, the Obama administration reacted furiously and S&P President Deven Sharma was forced out. Reuters. After the recent Fitch downgrade, "On Wall Street, the Dow Jones Industrial Average fell about 1%, to 35,282, the S&P 500 lost 1.38%, to 4,513, and the Nasdaq Composite dropped 2.17%, to 13,973." Reuters. Strangely, Indian stocks fell as well. "India's benchmark stock indices declined nearly 1% through midday on Wednesday (2 August)," as "All sectors plunged, with stocks of the public-sector banks and metals correcting the most." BQ. Equally strangely, "The dollar rose on Wednesday as investors shrugged off Fitch's US credit rating downgrade," because, "Private payrolls rose by 324,000 jobs last month, the ADP National Employment report showed, more than the increase of 189,000 that economists polled by Reuters had forecast." ET. "The Indian rupee ended 14 paise lower against the US dollar on Thursday (yesterday) amid a stronger American currency in the overseas market  and weakness in domestic equities." Mint. "On Wednesday, the Foreign Institutional Investors (FIIs) net sold Indian shares worth Rs 1,877.84 crore (Rs 18.7784 billion), while Domestic Institutional Investors net sold shares to the tune of Rs 2.23 crore (Rs 22.3 million)." Foreign funds were selling emerging markets to reduce risk and to seek safe haven, which happened to be the dollar. ET. "Indian investors turned poorer by Rs 3.5 lakh crore (RS 3.5 trillion) on Wednesday as foreign portfolio investors (FPIs) sold shares to meet redemption pressures in developed markets spooked by Fitch Ratings Inc's downgrade of US credit rating." HT pressreader. "As foreign investors repatriated dollars after selling their Indian assets, demand for the greenback rose, driving the rupee lower by 33 paise to close at Rs 82.58 to the dollar." "If you hear the buzz, the Indian economy is the bright spot in a gloomy world." ET. "Why then, do all three global rating agencies, namely Fitch, S&P and Moody's, have the lowest investment-grade rating on India?" Ethnic clashes continue to kill and destroy properties in Manipur (wikipedia) and Haryana is just cleaning up after violence between Hindus and Muslims (TOI). That shows poor governance and makes India unstable. If American companies can downgrade America, India would be easy. Must be careful. Very.