Ella 
The Indian rupee (INR) struggled to move higher on Thursday. FOMC minutes and a hawkish stance from Federal Reserve (Fed) policymakers boosted the US dollar, creating a “tailwind” for the pair. In addition, foreign capital outflows ahead of the results of India’s upcoming general elections also weighed on the Indian rupee. However, possible foreign exchange intervention by the Reserve Bank of India (RBI) may curb the Indian rupee’s weakness in the short term.
Market participants will be closely watching the preliminary reading of India’s May HSBC Purchasing Managers Index (PMI) released on Thursday. In addition, the preliminary value of the US S&P Global Purchasing Managers Index will also be released later in the day. If the report turns out to be stronger than expected, it could delay the rate cut cycle, supporting the US dollar (USD).
