Bangalore currencies are expected to gain some ground against the US dollar despite the downturn in regional economies and low yields. The forecast was laid out over a 12 month period.

Emerging currencies in Asia have been taking in the worst hit due to the global sell-off that was triggered late May. This was after the US Federal Reserve Bank signaled the possible reduction in the stimulus programme.

The announcement of the US Federal Reserve Bank sent many investors to get out of risky Asian bets, which in turn dragged equity indexes and currencies to plummet.

Analysts are saying that markets have largely priced in the Fed's policy shift, causing the U.S. dollar to gain little once the stimulus tapering happens.

A poll that was made by 65 currency economists and strategist showed all nine emerging Asian currencies to appreciate in the coming year. The Philippine peso and the Indian rupee are the expected forerunners with a forecasted 4% gain.