India’s economy has the fundamental strength to support the rupee, Brian Jacobsen, Chief Portfolio Strategist at Wells Fargo Funds Management said in an interview with CNBC-TV18.

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“It seems like India is bouncing back pretty nicely from that coronavirus crisis,” he added.

On the dollar, he said the greenback was recovering from levels of 92.50.

“There is probably good technical support at those levels but then there is also probably some fundamental support,” he said.

He sees some fairly good fundamental support for a slightly stronger dollar as opposed to a weaker dollar over the medium-term. “We are somewhat neutral in terms of positioning with the dollar,” he said, adding that the dollar should firm up if the stimulus in the US was smaller than what the market was expecting.

“Going into the elections, we thought that the market was pricing in a blue-wave scenario and so for us that generally means that Democrats will take control of the Senate, will take control of the house and then also take control of the White House,” he said.

According to him, market reaction suggests that people were very cautiously positioned going into the elections.

“We have been positioning portfolio more neutral with our emerging market exposure. We are looking for an opportunity rotate into more cyclicals. Within the emerging markets, you have Asia-Pacific region which is very much dominated by China. The valuations there are high but we think it is high for a very good reason. We think that there is some good support, good opportunities and that would include within the umbrella of India. So we are favourable on that area. We are positive on China and India in that general region,” he said.

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(Edited by : Santosh Nair)

First Published:Nov 6, 2020 3:27 PM IST