Goldman Sachs: AI Concerns Outweigh Currency Risks; Rupee Stable on Strong Fundamentals

• Kamakshya Trivedi of Goldman Sachs states AI and equity market reactions are bigger concerns than currency risks.
• Indian rupee is in a 'good place,' stabilized, and modestly undervalued on a trade-weighted basis.
• Depreciation of rupee expected to be gradual; AI's impact on software exports may not significantly affect earnings or inflows.
• Emerging markets, including India, are better positioned for global volatility due to improved policies and fiscal discipline.
• Goldman Sachs anticipates India's 10-year bond yield to move towards 6.5% and expects further US dollar depreciation.