Ella 
The Indian Rupee (INR) is set to start the new week on a positive note on Monday. The Indian rupee posted its biggest daily gain in more than eight months on Friday as Indian stocks rebounded sharply to record highs. Foreign investors bought $5.1 billion worth of Indian stocks in December, the strongest month for equity inflows since July.
Although the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) decided to keep interest rates unchanged on December 8, Governor Shaktikanta Das said it did not mean a shift to a neutral stance as concerns over inflation Concerns remain.
On the other hand, the Federal Reserve (Fed) left short-term interest rates unchanged last week, indicating that rate hikes may be over amid falling inflation and a cooling economy. Nonetheless, expectations of three interest rate cuts by the Federal Reserve next year have dragged the dollar lower, which is bearish for USD/INR.
Market participants will be closely watching U.S. housing data on Tuesday, including building permits and housing starts. The highlight of the week will be Friday’s release of the personal consumption expenditures price index (PCE), the Fed’s preferred inflation gauge.
