The Indian rupee, which slumped to an 11-week low on Thursday, is expected to recover and end the year stronger against the U.S. dollar, Mitul Kotecha, head-Asia Forex and rates strategy at Barclays, told BloombergQuint in an interview.
The rupee is the best carrying currency among emerging market peers despite the current declines, Kotecha said. He does not expect a prolonged period of pressure.
Also Read: Rupee Doubters Emerge as Cracks Seen in India Macro Picture
Despite a weaker current account (deficit) number, one thing to keep in mind is that current account is an easily financed event at weaker level by foreign direct investment, which has been very strong in the past couple of years.Mitul Kotecha, Forex Head, Barclays
Kotecha, however, acknowledged concerns amid a slowing growth. The current situation of the rupee is bad news on the economic front, he said. Apart from it, “the current account deficit, the GDP number in the second quarter and concerns on the slippages are some of the key concerns,” he said.
Also Read: Rupee Slides With Indian Bonds as Fiscal Deficit Concerns Rise
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