Ella 
The Indian rupee strengthened on Friday on stronger-than-expected economic growth data. Data released by the Indian Department of Statistics on Thursday showed that India’s gross domestic product (GDP) increased by 7.6% in September this fiscal year and remains the fastest-growing major economy. India’s economic expansion has been fueled by strong government spending and performance in manufacturing, mining and construction. This figure was better than the 6.5% forecast by the Reserve Bank of India (RBI).
Although Indian inflation fell to a four-month low of 4.87% in October, inflation is expected to remain above the Reserve Bank of India’s 4% target for the next two years. Markets expect the Reserve Bank of India to remain hawkish at the upcoming policy meeting and keep the key interest rate unchanged at 6.50% for the fifth consecutive meeting.
Market participants will focus on Friday’s release of the U.S. ISM Manufacturing Purchasing Managers’ Index for November. The indicator is expected to rise to 47.6 from 46.7. In addition, Federal Reserve Chairman Jerome Powell will deliver a speech. The Chicago Mercantile Exchange’s FedWatch tool shows that market expectations for the Fed’s easing policy have become more aggressive, and Fed fund futures are currently pricing in a 50-point interest rate cut by the Fed next year.
