Indian currency may continue to outperform other emerging market currencies: Sudhir Agarwal, UTI Mutual Fund

In an interview with ET Now, Sudhir Agarwal, Fund Manager-Fixed Income, UTI Mutual Fund, shares his views on the currency space. Excerpts:

ET Now: Just want a quick sense on the currency and where you see the range there?

Sudhir Agarwal: So we are not going by any range at the moment looks like that it is finding decent amount of support close to around 66 kind of levels so at the moment range being close to 65-66.

Now what is more important is rather that what we believes that Indian currency still may continue to outperform other emerging market currencies. When compared to any other emerging market currencies we should be performing better, backed by good fundamentals, reduced CAD levels, reduced fiscal deficit levels, reduced inflation.

Also to add to that fact then we also have recently we have seen the RBI increasing limit on GSEC for FII so that also might bring lot of flows into the Indian economy, so overall that should also provide some support to the currency in the near term.