Deutsche Bank says adjustment to rupee not yet over, currency likely to touch 75/$

Sameer Goel, head of Asia macro strategy at Deutsche Bank, spoke to CNBC-TV18 about the trends in domestic equity market and his outlook on rupee.

“It has been our view for a little while that a lot of the headwinds for emerging markets are still very much on and that will continue to pose pressure and at least keep markets terribly volatile. A lot of macro events happening at the moment, we see what is happening on the oil front, we certainly are seeing the trade narrative at the very minimum being very volatile but arguably only worsening here and we are seeing greater macro noise coming out of Europe,” said Goel.

Talking about the Indian trade dynamics , Goel said, “Some of the recent news at least on the margin has been positive. In that the trade gap and the basic balances more generally has been the basis for a lot of the weakness in the currency, a lot of the bearishness on the currency but there the global dynamics will still remain fairly punitive, the Indian trade dynamics are subject not just to oil prices but also in some sense to the broader trade. I think it is very hard for this narrative to turn sharply without corresponding tailwinds from the global picture as well."