Ella 
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The rupee’s rebound lost momentum on Wednesday as the dollar rebounded slightly. Markets turned cautious ahead of key U.S. inflation data, which is expected to show high inflation. However, dollar selling by foreign and state-owned banks, lower oil prices and an upbeat Indian economic growth outlook may provide some support to the rupee and limit USD/rupee gains.
Wednesday’s focus will be on the U.S. March inflation report and FOMC meeting minutes. These events may provide some clues about the path of inflation and the path of the Fed’s monetary policy. In India, the country’s markets were closed on Thursday for Eid al-Fitr. Focus turns to India’s March CPI report and February industrial production data released on Friday.
