Ella 
The Indian rupee (INR) weakened on Tuesday, weighed down by a rebound in the US dollar. Rising Indian stock markets, foreign capital inflows and falling oil prices may limit the rupee’s losses. However, increased demand for US dollars from importers and safe-haven capital flows ahead of the US non-farm report could weigh on the rupee.
India’s HSBC Services Purchasing Managers’ Index for August and the ISM Manufacturing Purchasing Managers’ Index will be released on Tuesday. All eyes will be on Friday’s U.S. labor market reports, including August’s nonfarm payrolls (NFP), unemployment rate and average hourly earnings. Comments from Federal Reserve Chairman Jerome Powell in Jackson Hole last month make Friday’s non-farm payrolls report even more important than usual. A weaker-than-expected outcome could trigger pricing in a deeper rate cut, putting selling pressure on the dollar.
