Anna 
The Indian Rupee (INR) is trading in negative territory on Tuesday, facing pressure from dip-buying demand in the US Dollar (USD). The currency pair is expected to remain within a narrow trading range, influenced by USD inflows from importers and potential intervention by the Reserve Bank of India (RBI). Analysts suggest that the RBI purchased the Dollar throughout the previous week to curb significant appreciation of the local currency amid continuous inflows.
The INR could receive additional support from MSCI-rebalancing inflows. Nuvama Alternative & Quantitative Research predicts that India may experience $1.2 billion in passive inflows into equities as a result of MSCI’s quarterly review, which is set to begin on February 29.
In the coming days, investors will closely monitor statements from various Federal Reserve officials. Additionally, key economic indicators, such as the US Gross Domestic Product (GDP) for Q4 on Wednesday and the Personal Consumption Expenditures Price Index (PCE) on Thursday, will impact market sentiment. On the Indian economic calendar, the release of GDP annual growth numbers and the Federal Fiscal Deficit is scheduled for Thursday. Furthermore, the Indian S&P Global Manufacturing PMI for February will be published on Friday.
