Rupee under pressure, expect some pullback after the RBI policy: Ajay Marwaha, HDFC Bank

In an interview with ET Now, Ajay Marwaha, EVP & Head-Trading, HDFC Bank, shares his outlook on the rupee. Excerpts:

ET Now: Most of the emerging market currencies have stabilized, but the rupee is still down. Your view?

Ajay Marwaha: The rupee is actually playing a catch up. We have seen that in the initial part of this move, which was triggered off by what happened in Argentina and in Turkey, the rupee was stable and steady.

It is only real catch up that has been playing over the last three or four days. Therefore, you can expect a little bit of catch up pressure to be there on the currency.

However, lira is pulled back this morning. You do have the central bank of Turkey about to announce some measures tonight. In that sense, you could see some stability return back to the emerging markets. My own sense is after the FOMC, a lot of this noise and panic will settle down.

ET Now: Do you think we will stabilise around Rs 63 or could we see further weakness as well?

Ajay Marwaha: It is difficult to call numbers. At the moment, the currency is definitely under pressure. You could see a pull a little beyond Rs 63. However, you have to expect some kind of pullback. After the RBI policy, you should see a little bit of pullback. So Rs 62.5-63 is a fair range to call for the moment, but that does imply a little bit of pullback.