MUMBAI, June 30 Reuters Indian importers should hedge their nearterm foreign currency payments on expectations that the U.S. dollar will rally in the next quarter on the back of more Federal Reserve rate hikes, several analysts said.

The greenback is projected to strengthen against most Asian currencies in the JulySeptember quarter, with a rate hike by the Fed at its July meeting now a near certainty, and the probability of another hike after that rising.

Further Fed hikes and sustained U.S. economic strength will keep most Asian currencies on the back foot against the USD, in the third quarter of 2023, analysts at BofA Global Research said in its midyear review note. They expect the Fed to hike rates by 25 basis points in July and in November.

While the rupee remains the most attractive emerging markets currency on carrytovolatility basis, further Fed tightening could put carry positions at risk.

Fed Chair Jerome Powell this week said two more rate hikes were likely, including increases at backtoback meetings.

BofA sees the USDINR climbing to 83 in the third quarter from 82.0250 currently. The rupee rose about 0.8 versus the dollar in the AprilJune quarter.

Data this week including U.S. GDP, durable goods, jobless claims and new home sales data have been betterthanexpected, indicating that the world39;s largest economy is holding up well to the aggressive rate hikes to dampen inflation.

Nearmaturity U.S. yields have jumped this week and the dollar index has…