‘Empirical Link’ To China’s Yuan Hurting Indian Rupee: JPMorgan’s Brijen Puri
The yuan is depreciating due to the U.S.-China trade war, and that will have a bearing on the rupee, says JPMorgan’s Brijen Puri.
JPMorgan expects the rupee to remain at 71 per dollar levels for the next few months as the Indian currency tracks the yuan, which has been weakening due to the ongoing U.S.-China trade war.
“We’ve seen the yuan depreciate and the Indian rupee getting empirically linked to the yuan,” said Brijen Puri, head (currencies and emerging markets, Southeast Asia) at the global investment banking firm. The market doesn’t believe that there’s going to be any big-bang win in terms of the U.S.-China trade deal because there’s still a very wide gap between what the U.S. wants and what China wants to give up, Puri told BloombergQuint during an interview.
A combination of weakening oil prices and other geopolitical factors are not adding up to a positive backdrop for the Indian rupee, he said.
WATCH | JP Morgan’s Brijen Puri on India-China currency linkages