In an interview with ET Now, Tirthankar Patnaik, Strategist, Mizuho Bank shares his views on the currency market. Excerpts:You are absolutely correct. There is not too much happening on the economy front per se in India. What is happening is on sentiment. Let us not forget that the INR has been a massive outperformer over the last two years across all emerging market currencies and it is here that this overvaluation that the INR has at around 10 per cent to 11 per cent on the real effective exchange rate that is showing up in the selloff that we are seeing just now. If the 65 handle is broken then it would largely be owing to near term sentiment.Do you see a big break beyond 65? We are not really re-living the conditions of September 2013. It is more a currency led move than something related to the local macro environment . So to that extent, do you think the fall as well as the market’s performance would be arrested within these levels?If you see the macro picture, in 2013 we had five per cent current account deficit. We had more than 4.5 per cent fiscal deficit. Our inflation numbers were about eight to nine per cent. Today inflation is south of four per cent. Current account deficit is south of 1.5 per cent and is likely to remain like that for the next two years. So, clearly macro drivers put India in pole position. What you are going to see is that this drop in the currency is unlikely to continue over even the medium period unless things really unravel on the emerging market pack as a whole. I therefore believe the rupee will continue to outperform emerging market currencies despite its near term correction.I just want to come in on the market angle or market view on the currency because a lot of fund managers who I speak to say it is great that the rupee is stable because that protects our investments in the market. In an environment where currencies are falling across the board, emerging markets are underperforming. India really stands out because of a stable currency, a stable macro environment and a market which is decent returns.A stable currency is something that is be loved by investors. One of the reasons why we had significant debt outflows in 2013 was it was a symbiotic relationship with currency dropping on one hand and debt flows re-inforcing each other and actually exacerbating the issue. So, with forex reserves of $350 billion plus, sufficient import cover we believe that so long as the foreign exchange wall remains under control, foreign investors should not have long-term issues on the country. Which is what we have seen while flows have sort of tapered off. We continue to remain positive on India, so my sense would remain that the RBI would be probably happy with the gradual depreciation on the currency, that makes sense with real effective exchange rate at about 111 right now on the 36 currency trade weighted index. They will see volatility remaining under control. That is good situation for India to be in at the moment.