Anna 
On Thursday, the Indian Rupee (INR) saw a modest recovery after experiencing a record low on Wednesday. The currency had been under pressure due to concerns surrounding escalating tensions in the Middle East, which raised fears of potential disruptions to oil supplies and subsequent increases in oil prices. India, as the third-largest consumer and importer of crude oil, is particularly vulnerable to higher oil prices, which could negatively impact the economy and place downward pressure on the INR.
Additionally, growing expectations that the Federal Reserve (Fed) will postpone rate cuts provided some support to the US Dollar (USD) and consequently exerted pressure on the USD/INR pair. However, the potential for further gains in the pair may be limited by the possibility of intervention from the Reserve Bank of India (RBI) to prevent excessive depreciation of the local currency.
Market participants are closely monitoring several key indicators, including the weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Existing Home Sales, scheduled for release on Thursday. Additionally, speeches by Fed officials Bowman, Williams, and Bostic later in the day will be scrutinized for insights into monetary policy. Looking ahead, the release of the RBI Monetary Policy Committee (MPC) Meeting Minutes on Friday will provide further clarity on the central bank’s stance and its potential impact on the INR.
