Anna 
Despite geopolitical concerns and foreign fund outflows, the Indian Rupee (INR) demonstrated resilience on Friday, staging a rebound. However, escalating tensions between Israel and Iran have heightened apprehensions regarding a broader conflict in the Middle East, amplifying fears of potential disruptions in oil supply. The INR faces pressure from higher oil prices, given India’s status as the third-largest consumer and importer of crude oil. Additionally, the increased demand for the US dollar (USD) as a safe-haven asset may contribute to lifting the USD/INR pair.
Conversely, the potential upside for the USD/INR pair is constrained as the Reserve Bank of India (RBI) is anticipated to intervene in the foreign exchange (FX) market to mitigate local currency volatility. Investor attention is also focused on the ongoing India general election 2024, with more than 1.4 billion people commencing voting on Friday. Furthermore, market participants await the release of the RBI Monetary Policy Committee (MPC) Meeting Minutes later in the day.
Additionally, on the USD front, Chicago Fed’s Austan Goolsbee is scheduled to deliver remarks, adding to the factors influencing currency market dynamics.
