According to the global financial services major, in the coming year all Asian currencies are expected to weaken against the USD, but the Indian rupee would be one of the more resilient currencies, provided the domestic policy framework does not disappoint.
"While many are in a better position than other emerging market currencies, we still see all Asian currencies weakening against the USD," HSBC said adding that the Renminbi (RMB), the Indian Rupee (INR), the  Indonesian Rupiah (IDR) and the Philippine Peso (PHP) should hold up better.
On the other-hand, the Taiwan New Dollar (TWD), the Korean Won (KRW) and the  Malaysian Ringgit (MYR) could underperform, HSBC said.
"The INR has outperformed the region, supported by strong portfolio inflows and reform optimism, while improving macro data also helped. This story should continue in 2015," HSBC said in a research note.
The likely improvement in the current account deficit and the real interest rate profile will sustain the INR's steady performance in 2015. In addition, decline in global commodity prices is also expected to help the Indian rupee.
"Challenges are mounting for Asian currencies. However, despite this, there are some early signs of positivity
emerging for some currencies, especially those, where the reform agenda is gathering momentum such as the INR and the IDR," the report said.

According to the global brokerage firm, INR's long-term outlook has improved, largely driven by the recent measures aimed at attracting investment and controlling the twin current account and fiscal deficits.
The reform process is likely to gain further momentum going forward, especially after the BJP's win in recent state assembly elections, HSBC said.

"We await more government divestment plans, and an increase in FII limits in 2015. We also expect the RBI's monetary and Forex policy to manage INR volatility," it added.      

The rupee depreciated by another 5 paise to 61.88 against the US dollar in early trade on Tuesday

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