Ella 
The Indian rupee (INR) edged higher on Tuesday after hitting a four-month high in the previous session. A rebound in Indian stocks could provide some support to the Indian currency. Additionally, anxiety about tariffs and U.S. President Donald Trump’s criticism of U.S. Federal Reserve (Fed) Chairman Jerome Powell could drag down the U.S. dollar (USD), thereby benefiting the Indian rupee.
On the other hand, the market will be keeping an eye on the Reserve Bank of India (RBI), which appears to be buying US dollars to curb the rise in the Indian rupee. Rising market expectations that the RBI will cut interest rates at its upcoming policy meeting may put pressure on the local currency. India’s inflation rate fell to its lowest level in five years in March, latest data showed, well below the RBI’s medium-term target of 4%.
The Fed’s Patrick Harker and Neel Kashkari are due to speak later on Tuesday. On Wednesday, the HSBC Purchasing Managers’ Index (PMI) for India and the S&P Global PMI reports for the US will be in focus.
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