Expectations of Fed rate cuts drive emerging markets rebound, with the Indian Rupee feared to be the only absent currency

Bankers say that the expected interest rate cut in the United States next month is not likely to help the overvalued Indian Rupee, despite the appreciation of other emerging market currencies. According to reports, the Rupee has performed poorly recently and has not benefited from the decline in the US Dollar. Meanwhile, currencies such as the Brazilian Real and the Thai Baht have appreciated by about 5%. The Reserve Bank of India may prefer to see the Rupee maintained at a relatively high real effective exchange rate level to protect export competitiveness. Analysts hold a negative view on the Rupee, although they are optimistic about the prospects of other Asian currencies