Comments on Rupee from industry experts - April 19, 2021

KVS Manian, Whole Time Director & Member of the Group Management Council at Kotak Mahindra Bank:

"The forex markets and dealers seem relatively more spooked by the surge in Covid cases and hence this Rupee weakness may be purely sentiment driven unless there have been some large flows impacting the Rupee. The fundamentals of the economy both Indian and international have not changed or are not yet expected to change significantly for the Rupee to weaken so much. The bond and equity markets are still not showing similar levels of weakness. The dollar indices also indicate that dollar has not strengthened against other currencies. If all this is true the weakness in the Rupee may be short lived and the range of 74-76 over the year will still hold good."

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:

"The rising cases of COVID have soured sentiments in Rupee. The result of which has been a broad-based depreciation in the Indian Rupee. Inspite of a weak US Dollar globally, Rupee is under pressure. RBI is expected to be active and may intervene aggressively to curb volatility. Over the near term, we expect a range of 74.00 and 75.50."

Source : Equity Bulls

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