Forex Tips: NEW DELHI: The INR rose 8 paise to 66.38 against the US dollar in early trade on Wednesday despite weak trading in most Asian currencies.

The Indian currency had settled at 66.46 against the greenback, in the previous session.

Experts believe that the recent INR appreciation is nothing but a result of weakness in the US dollar against major world currencies, post the recent dovish Federal comments. They expect the rupee to depreciate, going ahead.

“I do not think that the INR on its own deserves actually this kind of appreciation. It is basically a reflection of the dollar weakness. If dollar starts strengthening again, the INR will be back on the depreciating path,”said Chetan Ahya, MD, Morgan Stanley.

Similar views were echoed by Mr. Nilesh Shah, MD, Kotak AMC.

But “rupee has also benefitted in the current time as FII flows on the equity side have been strong. March witnessed more than $3 billion of flows. However, INR over a period of time will look at what is happening in September 2016, when India will be repaying $30 billion worth of FCNR (B) deposits,” Shah said.

Mr. Shah noted that India has reserves to repay those deposits, “But, such a hug outflow could create its own upheaval in the currency market. We expect RBI to manage that transition quite well and the INR should depreciate over rest of the calendar year 2016 in an inflation differentia between India and the remain of the world.”

On Wed, most Asian currencies were trading in the red. The Korean won (down 0.21%), the Taiwanese $ (down 0.12%), the Indonesian rupia (down 0.08%), and the Chinese yuan (down 0.04%) were trading lower.

The $ index, which tracks the movement of $ against a basket of six major world currencies, stood at 94.68, up 0.05%.