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Expect INR to underperform other EM currencies: Deutsche Bank's Sameer Goel

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“I would be inclined to think that the rupee (will) underperform the other emerging market currencies,” said Sameer Goel, Head of Asia Macro Strategy, Deutsche Bank in an interview with CNBC-TV18.

“I would be inclined to think that the rupee (will) underperform the other emerging market currencies,” said Sameer Goel, Head of Asia Macro Strategy, Deutsche Bank in an interview with CNBC-TV18.
He elaborated, “...primarily because I feel the possibility of these lockdowns being extended and therefore more materially impacting growth estimates – that probability is still there and that risk needs to be accounted for by the market."
The Indian rupee slumped 18 paise to 73.53 against the US dollar in opening trade on Tuesday tracking weak domestic equities and strong American currency.
“Over the next few weeks, the dollar trend will now be a lot more relevant and I think the broader dollar trend is going to be more dovish in nature and that will give rupee more footing, more ability,” he stated.
“I am surprised as the way the rupee has played out. Mostly so because to our expectations, the rupee should have reacted more to the likelihood, the possibility that we will see a lot of the growth and earnings estimates in India getting downgraded,” he said.
“We have seen relatively the markets being very resilient, seen through what is happening in India at the moment and effectively positioning still for the other side of this COVID wave and the fact that it does not materially hurt the longer-term productive potential or necessarily the appeal of the Indian market,” he added.
For the full interview, watch the video.

Market Movers

CompanyPriceChng%Chng
Sun Pharma773.95 70.95 10.09
Tech Mahindra1,209.55 81.75 7.25
Cipla920.05 36.95 4.18
Shree Cements28,265.75 626.80 2.27
Adani Ports674.50 14.85 2.25
CompanyPriceChng%Chng
Sun Pharma774.00 70.75 10.06
Tech Mahindra1,209.45 81.70 7.24
Power Grid Corp171.05 3.65 2.18
Bajaj Auto3,831.05 68.25 1.81
HCL Tech1,025.45 17.85 1.77
CompanyPriceChng%Chng
Hindalco444.80 -13.30 -2.90
Bajaj Finance6,228.10 -172.00 -2.69
SBI Life Insura1,098.60 -30.25 -2.68
Bajaj Finserv14,222.20 -376.85 -2.58
SBI431.80 -9.75 -2.21
CompanyPriceChng%Chng
Bajaj Finance6,228.90 -165.40 -2.59
Bajaj Finserv14,221.30 -369.15 -2.53
SBI431.70 -10.05 -2.28
Tata Steel1,433.75 -25.25 -1.73
Titan Company1,714.50 -25.60 -1.47

Currency

CompanyPriceChng%Chng
Dollar-Rupee74.41000.12500.17
Euro-Rupee88.1640-0.0840-0.10
Pound-Rupee103.3800-0.2730-0.26
Rupee-100 Yen0.6779-0.0005-0.07