I am bearish on rupee this year: MS Gopikrishnan, Head of FX, Rates & Credit Trading, StanChart

What is your takeaway from the ET Markets pre-budget meet?

MS Gopikrishnan: The SBI chairman was very candid while (road, transport and highways, and shipping) minister (Nitin) Gadkari showed he is on the ball when it comes to the expectations from his ministry on India’s development. The venue suited the mood.

Where do you see the rupee headed?

MS Gopikrishnan: I am bearish on the rupee this year for a few fundamental reasons. The inflows (equity) are now negative. They will either remain flat or negative this year as redemptions are happening across emerging markets. However, debt route should be good and enough money should be coming in provided debt (investment) limit (for foreign portfolio investors) is increased. The rupee could be under pressure and may depreciate to 70-71 to a (US) dollar.