Ella 
The Indian rupee (INR) weakened on Tuesday even as the US dollar consolidated. A combination of falling Asian currencies, rising crude oil prices, softer Indian inflation data and cautious market sentiment ahead of key U.S. economic data have contributed to the decline in the Indian rupee. However, the Reserve Bank of India (RBI) may intervene to sell the US dollar to prevent a deeper depreciation in the local currency, which may limit the pair’s upside.
Traders will focus on the U.S. Producer Price Index (PPI) for July for fresh impetus. On Wednesday, the U.S. Consumer Price Index (CPI) will provide some hints on the Federal Reserve’s (Fed) decision to cut interest rates. In India, wholesale price index (WPI) inflation will be closely watched, with the annual rate expected to fall from 3.36% in June to 2.39% in July.
