Anna 
On Wednesday, the Indian Rupee (INR) experienced a slowdown in its recovery momentum, coinciding with a modest rebound of the US Dollar (USD). Market sentiment turned cautious as investors awaited key US inflation data, expected to reveal elevated inflation readings.
Despite this, the INR found some support from foreign and state-run banks’ USD sales, along with lower crude oil prices and robust growth prospects in the Indian economy. These factors may help cushion the INR’s performance and limit the upside of the USD/INR pair.
The focus of the day remains on the release of the US March Consumer Price Index (CPI) report and the Federal Open Market Committee (FOMC) Minutes. These events carry significant weight as they could provide insights into the inflation trajectory and the Fed’s monetary policy outlook.
Looking ahead, Indian markets will be closed on Thursday for Eid al-Fitr, shifting attention to domestic data releases on Friday. Market participants will keenly await the Indian CPI inflation report for March and Industrial Production figures for February. These data points will offer valuable insights into the state of the Indian economy and could influence future monetary policy decisions.
As global and domestic factors continue to shape currency movements, the INR’s resilience amidst USD rebound underscores the complex dynamics at play in currency markets. Traders will closely monitor developments in both the US and Indian economies for cues on the future direction of the USD/INR pair.
