EM currencies have been an easy hit, Argentina a trigger: Jamal Mecklai

In an interview with ET Now, Jamal Mecklai of Mecklai Financial Services shares his outlook for the rupee. Excerpts:

ET Now: It is all about emerging market currencies once again but do you think it would be naïve to compare what is happening in Argentina and Turkey and that to Indian currency?

Jamal Mecklai: Argentina is clearly basket case and the real problem is that markets have got little quiet around the new year. Volatility was very low. So there is a sign that at some point, it is going to turn, some little trigger is needed.

Argentina was the trigger and equities have run up everywhere and emerging markets were the easy hit. What was interesting is that the dollar also fell with the yen and euro getting stronger.

India is much better off than it was six-eight months ago. The current account deficit is not as bad and the global market is not in that bad shape. So this is not going to be a replay of what we saw last year. So, you need to recognise there will be volatility and you protect yourself against it.