The rupee is seen to be better placed compared with other emerging market currencies as the Indian economy is less vulnerable to protectionist policies expected from US President Donald Trump.
After Trump’s election victory, the rupee has outperformed several emerging market currencies.
“The rupee continues to be a better performing currency and is at or above the median level of change in a set of 17 currencies. We believe that the rupee will be driven more by fundamentals than an external US shock. US policies are more likely to affect countries like Mexico and China, which may be expected in the next six months,” said Madan Sabnavis, chief economist, CARE.