New Delhi, May 16 -- Rupee breaching one level after another is more a reflection of sentiment-driven weakness than any serious deterioration in macro fundamentals, said N ArunaGiri, CEO of TrustLine Holdings.
He warned that the real risk is that, if left unchecked, this loss of confidence can turn into a self-fulfilling vicious cycle, triggering further pressure on the rupee that is not warranted by underlying fundamentals.
"If one looks at India's macro position today, the situation is far from alarming. The current account deficit remains manageable, forex reserves are reasonably comfortable with import cover of nearly eight to nine months, and the fiscal deficit trajectory continues to remain relatively stable. Given these macro metri...