@vshah20 , Namaste ji. Please accept my humble apologies for the delay in response ding to your question.
(a) As a US person ( citizen / GreenCard / Resident for Tax purposes ), , generally your operating currency is US$
(b) Your investments are generally considered to be personal assets ( unless you are in the business of investing i.e. most of your incomes comes from FOREX / Foreign in vestments ) and thus while gains are taxable income, losses are generally ( and on a stand alone basis ) not reportable.
Thus what I am saying is on a dollar for dollar basis , if there is a gain ( currency effects are included when you use your operating currency as US$), gains/ losses are reported just as if the stocks and bonds were domestic ( long term/ short-term ) and traded as such -- with the added complexity of foreign exchange effects.
What you cannot recognize is a case where in you put US$100,000 and put it in an interest bearing account in India, at 10% annual interest, bring it out after a year and getting back only US$98,000 after the exchange effects. This loss is not recognizable because it is personal asset and because you " knew or should have known " the risks of foreign exchange fluctuations s/ trends ds and risks thereof.
Also note that Stocks bonds etc. do come under FATCA / FBAR rules
Does this make sense ? Is there more I can do for you ?
Namaste ji
pk
