For India, the affordability of Russian military equipment comes with lower quality and coercive leverage, and that price is too high. The solution is to diversify towards suppliers such as the US. Signalling this intention at the coming Quad meeting would make clear to the world India’s implicit criticism of Russia.
Tighter US monetary policy is in the offing and should continue to provide general support for the US dollar on the foreign exchanges. China’s coronavirus-related lockdowns are a big headwind for the economy, justifying a weaker yuan from a currency market perspective.