According to Sean Callow, Sr Currency Strategist, Westpac Banking Corp the rupee has actually performed quite well. “Overall, it has been very stable and I think that it’s an impressive performance, particularly given previous episodes of risk reversion,” he said.

Excerpts of CNBC-TV18’s exclusive interview with Sean Callow:

Q: What is the kind of reaction that you are seeing for the Central Bank intervention that we have seen across countries?

A: I think the key point to make there is that what they are really doing is just smoothing down the money markets and trying to make sure that the overnight rate, which is their target, is actually where it trades. That is what we see from ECBs, the Fed, RBI and Bank of Japan. So, that is the key that it is not by any means a prelude to an interest rate cut at this point.

Q: What about the yen, where do you see appreciation taking that currency to, before any retracement, 117 is where it is right now?

A: That is an interesting one because professional speculators, for a large part, have already unwound a lot of their yen positions in the fall from 123 or thereabouts, to 118. So, a lot of the yen buying has come in from the retail accounts. So, I think so long as it holds above the 117.20 recent low, which should be a start to stabilize near-term.

Q: What is your view on the Asian currencies and the rupee in particular?

A: Most of them are under pressure but I think the rupee is one that has actually performed quite well. Overall, it has been very stable and I think that it’s an impressive performance particularly given previous episodes of risk reversion. So, we are sticking with our view that the dollar-rupee is as lower as 40 in the end of September and 39.70 till year-end.