The spectacular fall in the rupee has been grabbing market attention in recent months, but the focus could soon shift to the Indonesian rupiah, which Credit Agricole warns could suffer the same fate as the embattled Indian currency.
Dariusz Kowalczyk, senior Asia ex-Japan strategist at Credit Agricole, said Indonesia's slowing growth and rising inflation, which exceeds India's, as well as an increasing current account deficit and low foreign exchange reserves, are starting to resemble the problems faced by India's economy.
"(The) fundamental picture is increasingly looking similar to India's but the rupiah has suffered much less and will need to catch up," Kowalczyk said.
(Read more: India's rupee hits record lows, here's what it means)
India's rupee has fallen nearly 13 percent against the dollar year-to-date, brushing a fresh record low around 61.87 last week. It currently trades around 61.19. The Indonesian rupiah, meanwhile, is down nearly 7 percent against the dollar this year, and currently hovers at around 10,285.
Agricole now expects the rupiah to weaken to around 10,400 against the dollar by year-end, noticeably more bearish than its previous forecast of 9,890.