Ella 
The Indian rupee (INR) weakened on Friday on the back of a modest rebound in the US dollar (USD). The Federal Reserve’s (Fed) mantra of “higher for longer” US interest rates boosted the dollar and exerted some selling pressure on Asian emerging market assets, including the INR. Moreover, cautious expectations on key US inflation data may support the dollar for the time being.
On the other hand, as India is the third largest oil consumer, the decline in crude oil prices may limit the downside for the INR. Economists believe that India’s economic momentum remained strong in January-March (Q4 FY24) with a GDP growth rate of 6.8%. Stronger-than-expected data may support the INR and drag down the currency pair in the short term. On the US side, the US Core Personal Consumption Expenditures Price Index (Core PCE) for April will be released.
