Anna 
The Indian Rupee (INR) continued its upward trajectory on Tuesday, buoyed by a positive sentiment in global markets, inflows from Foreign Institutional Investors (FIIs), and resilience in domestic markets. However, the outlook for the USD/INR pair remains influenced by expectations that the Federal Reserve (Fed) might postpone interest rate cuts, supported by robust US labor market data and the strength of the US economy, potentially bolstering the US Dollar.
Market participants will closely monitor the release of the US March Consumer Price Index (CPI) report on Wednesday to gain insights into the inflationary trends in the US. Projections suggest a slight easing to 0.3% month-on-month in March from the previous reading of 0.4%. A stronger-than-expected CPI figure could dampen expectations for Fed rate cuts in June, while softer data may fuel speculation for rate reductions.
On the Indian economic calendar, markets will be closed on Thursday for Ramadan Eid. Attention will then turn to the release of the Indian CPI report for March and Industrial Production data for February on Friday, providing further indicators of economic performance and inflationary pressures domestically.
