answer 1

“We’re more constructive on the Indonesian rupiah and the Indian rupee. We still expect both currencies to depreciate, but not as much as the forwards currently price. And a lot of that has to do with the fact that real interest rates in both countries are still somewhat historically high, more so in Indonesia. Our forecast is for both to cut rates one more time, but we stress that is now somewhat conditional on what the Fed does and how the dollar performs.”

Credit Suisse predicts the rupiah will weaken 3.8 percent from Monday’s close to 13,900 a dollar by year-end and the Indian rupee will drop 1.9 percent to 69.50 in the same period.