Anna 
On Wednesday, the Indian Rupee (INR) experienced a loss in momentum, influenced by the surge in crude oil prices to nearly a five-month high. This increase in crude oil prices has placed selling pressure on the INR, given that India ranks as the world’s second-biggest oil importer. Additionally, escalating geopolitical tensions in the Middle East and the Russia-Ukraine conflict may further elevate crude oil prices, consequently weighing on the INR.
Despite these challenges, the INR’s downside may be limited by robust Indian economic data and an optimistic outlook for the Indian economy. The final reading of the Indian HSBC Services Purchasing Managers’ Index (PMI) for March is scheduled for release on Thursday, providing insights into the performance of the services sector.
Looking ahead, Reserve Bank of India (RBI) Governor Shaktikanta Das is set to unveil the first monetary policy of the financial year 2024–25 on Friday. Analysts anticipate that the Indian central bank will maintain its key repo rate at 6.50% during its April meeting and uphold its stance of withdrawal of accommodation.
Meanwhile, on the US economic calendar, the release of the ADP Employment Change and the ISM Services PMI on Wednesday will provide indications of the labor market and the services sector’s performance, respectively. Additionally, market participants will await the highly anticipated Nonfarm Payrolls (NFP) report on Friday for further insights into the US employment landscape.
