Asian currencies surged on Monday, with the Indian rupee leading gains, as the US dollar extended its decline following controversial remarks by former President Donald Trump about Federal Reserve leadership.

The rupee climbed to an early high of 85.0525 (Dh23.1750) before settling at 85.1125 (Dh23.1914), marking a healthy 0.3% daily gain against the weakening greenback.

Trading floors buzzed with speculation about potential Reserve Bank of India intervention, though market participants noted some dollar demand from importers could be supporting the US currency at current levels.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The dollar's prolonged weakness has sparked renewed interest in Asian currencies, with risk appetite improving across regional markets. This changing landscape is particularly evident in rupee hedging costs, which have fallen sharply in recent sessions.

Key indicators show significant shifts - the one-month dollar-rupee forward premium plunged to a yearly low of just15.50 paisa, while similar contracts in offshore markets approached their lowest levels since early2026.

div >

< div cl ass = “ mpu ” >< div cl ass = “ slotad ” id=“ div-gpt-ad-1613027583068-0” > div > div > div >