Core Viewpoint - The report by ING indicates that the Indian Rupee has the highest potential for appreciation among Asian high-yield currencies, particularly if a trade agreement is reached between India and the United States [1] Economic Outlook - The report forecasts that by the end of 2026, the exchange rate of USD to INR will rise to 87, representing an appreciation of approximately 2% from current levels [1] - The assessment is based on the Real Effective Exchange Rate (REER), which shows that the Rupee is currently trading below its fair value, indicating significant appreciation potential within the Asian region [1] Indian Economic Fundamentals - India's economic fundamentals remain robust, with manageable fiscal risks and a continued diversification of supply chains, which are attracting foreign investment [1] - As a leading high-yield economy, India continues to be attractive in global capital allocation [1] Trade Negotiation Impact - The report suggests that if trade negotiations progress favorably, the Indian Rupee could experience a substantial reversal in its performance [1]

Core Viewpoint - The Bangladeshi Taka has been overvalued against the US dollar in July after being undervalued for two consecutive months, raising concerns about Bangladesh's trade competitiveness in a turbulent global market [1] Group 1: Currency Valuation - The Real Effective Exchange Rate (REER) for Bangladesh in July was 101.14, up from 98.61 in June and 99.27 in May, indicating an overvaluation as it exceeds 100 [1] - The REER is based on 18 currencies representing 85% of Bangladesh's external trade, with 2016 fiscal year as the benchmark [1] Group 2: Economic Implications - An overvalued currency typically weakens export competitiveness and slows down remittance inflows [1] - A senior central bank official attributed the recent increase in the REER to several interconnected factors, including a weaker US dollar and rising domestic inflation in July [1]