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The Reserve Bank of India has responded to the depreciation of the rupee through macroprudential tools such as restricting derivative trading, increasing foreign exchange risk reserves, and opening a US dollar window for oil companies. Nomura pointed out that if the global environment does not improve, exchange rate flexibility and coordinated fiscal and monetary actions may be implemented in the future. The shift in Federal Reserve policy and the tightening of Asian central banks' interest rate differentials between the US and Asia are variables that have not yet been fully reflected in emerging market asset pricing for the next one to two quarters.