JPMorgan Investor Summit: Indian Rupee Holds Steady Near Fair Value, Says Luis Oganes

The Indian rupee is very close to what is considered 'fair value' at Rs 83, according to JPMorgan's Luis Oganes.

One reason we haven't witnessed excessive currency pressure during the current Fed rate hike, in contrast to the 2013 "taper tantrum", is the rupee's proximity to fair value, the global head of currencies, emerging markets, and commodities research at JPMorgan India told BQ Prime on the sidelines of the JPMorgan India Investor Summit.

"The rupee was quite overvalued," he said. There were massive capital outflows from the energy markets that put pressure on central banks to hike rates, which has not been the case this time, he said.

"That tells you that the rupee and other currencies in the emerging markets are not so dislocated, either overvalued or significantly undervalued," he said.

India has successfully reduced its current deficit in recent years, and as a result, the Reserve Bank of India has found itself accumulating reserves, Oganes said. This strategic move can be seen as an effort to curb excessive appreciation rather than depreciation, as it prevents the currency from appreciating too rapidly, he said.