The Indian rupee is not expected to fall further, said Mark Matthews of Bank Julius Baer & Co, adding that the "the fair value for the rupee is probably around where it is now, about 73 per dollar".
"...I don’t expect the rupee to fall another 13 percent but we certainly see that – there are enough reasons why the emerging markets will remain vulnerable that will keep people away from them. I want to be precise, we are not underweight India, we are only neutral now,” said Matthews.
On bonds, he said, “I do agree that in the emerging market asset class, the bonds do offer a lot of value and enough to cushion any further falls in the currencies," he said.
“We expect the 10-year treasury to be at about 3.5 percent this time next year and it is about 3 now, so higher than where it is now and the Fed is in a little bit of a dilemma,” Matthews added.
First Published: Sept 12, 2018 9:50 AM IST