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The rupee has been on the depreciation path in the last few months due to various factors such as widening trade deficit, rising crude oil prices, and a surge in the dollar index after the US Federal Reserve hinted at fewer rate cuts in 2025.

Japan’s Topix dropped in its first session after a multiday holiday, though shares in Korea and Australia gained. US contracts also slipped

The greenback is strong because the American economy is vigorous. The region does have choices, none of them easy

The Indian rupee opened marginally higher against the US dollar tracking gains in local equities and Asian currencies markets.

An RBI-appointed committee recently suggested measures for the internationalisation of Indian rupee with inclusion in IMF’s Special Drawing Rights Basket (SDR). The panel proposed integrating Indian currency for cross-border transactions as well.

Asian currencies won’t show a unidirectional in 2023 like they did in 2022 because of the push and pull of US Federal Reserve’s rate hikes and China’s reopening, said Patrick Law, head of forex trading for Asian Pacific at Bank of America

The home currency opened at 82.29 and touched a high of 82.23 a dollar — a level last seen on 9 December. At 9.30am, the domestic currency was trading at 82.23 a dollar, up 0.3% from its previous close of 82.36.

The trend is unlikely to continue. Analysts expect the rupee to depreciate this month and likely surpass the 82.28 level amid continued strength in the dollar Index

This was the seventh out of eight sessions when the currency dropped and lost over 2.51% in this period. So far this year, it fell around 8.48%.

The fortnightly poll of 13 respondents showed investors held long positions on all nine Asian currencies for the first time since late January, before the COVID-19 pandemic dealt its devastating economic blow.

Forex traders said the rupee is trading in a narrow range as positive domestic equities supported the local unit, while sustained foreign fund outflows and concerns over coronavirus outbreak weighed on the local unit.

“We think there’s a chance we could do something very substantial,” Trump said about the talks. This comes after a media report stated that China is looking to narrow the scope of the talks.

Sanghamitra Mukherjee of Financially Speaking talks about ways to manage the rupee weakness

Experts believe this could be because of a disappointment with the budget and more recently, the Rs 11,400 crore Punjab National Bank fraud that came to light last week.

The Reserve Bank of India stepped in to cap broader gains in the rupee, traders said, adding that some of the gains were also due to the strong $6.1-billion foreign investment into debt and equities this month.

Since the start of the year, most Asian currencies have risen against the dollar, as uncertainty about President Donald Trump’s economic policies hurt the greenback.

Craig Chan, head of Asia FX research at Nomura, listed Rupee, Indonesia’s Rupiah and Malaysia’s Ringgit with scope to outperform among Asian currencies from now till end of this year, supported by strong macro fundamentals.

In 2015, the currency carry trade, which attempts to profit from global differences among interest rates, has seen its worst year since the financial crisis, according to Deutsche Bank.

The Shanghai Composite Index lost 3.4 percent, in a new stumble that underscored fragile investor confidence in the market and pushed emerging Asian currencies lower.

Giving performances of Asian currencies, David Carbon, managing director for economic and currency research at DBS, said the rupee has appreciated by 6.6 percent from July 2014 to this month against the Japanese yen, euro and USD combined.

The Federal Reserve is widely expected to hike interest rates in July after unwinding its quantitative easing program this year, according to CNBC`s latest Fed survey of economists, strategists and fund managers, released last week.

According to Sudarshan Sukhani the Bank Nifty and Nifty are in a confirmed uptrend despite corrections, so one can stay long and use dips to buy.

The Federal Reserve is widely expected to hike interest rates in July after unwinding its quantitative easing program this year, according to CNBC’s latest Fed survey of economists, strategists and fund managers, released last week.

2015 will be a tough year for Asian currencies and every single major currency will drift lower against the US dollar (USD). The Indian rupee (INR), however, will be one of the few currencies that will cope with the greenback strength better, according to an HSBC report.

The rupee would by and large rupee track Asian currencies around the world and could weaken to around 62.50-63 to the dollar, feels Arvind Narayanan of DBS.