Rupee more sensitive to FPI inflow as FDI falls: Michael Sneyd, BNP Paribas

Sneyd says India is unlikely to be named a currency manipulator in forthcoming reports

Michael Sneyd, global head of foreign exchange strategy and cross-asset strategist at BNP Paribas, the Paris-based financial group, tells Indivjal Dhasmana the rupee has depreciated three per cent in 2018 and the 10-year bond in value by four per cent. This has wiped out one year’s yield of the bond. Even then, he says, foreign investors have more favourable views of bonds than equities in India. Edited excerpts:

The US has put India on its currency watchlist. How do you see this impacting the dollar-rupee and investment in India's bond markets? Is there is a chance of the US administration