Yes, the rupee can appreciate more

In this world of new 'normals', going past gauges of overvaluation might just be a lost cause

Quite a bit of economics is unfortunately about zero-sum games. Portfolio investors in India clearly have reason to cheer but on the flip side exporters have reason to fret. A restrained current account and a flood of capital flows have trapped the rupee in a narrow range. Forecasters including ourselves are slowly reconciling to the prospect of medium-term rupee appreciation.

A number of things have happened to break the pattern of orderly depreciation of the Indian currency over the last couple of years. First, the dollar seems to be slipping into a phase of secular decline and that should mean gains