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

“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.