Ella 
The Indian rupee (INR) lost traction on Tuesday amid strength in the US dollar (USD). India’s wholesale inflation, measured by the Wholesale Price Index (WPI), exceeded deflationary territory for the second consecutive month and reached its highest level in the past nine months, mainly due to rising food prices.
World Economic Forum (WEF) Chairman Borge Brende said on Monday that the Houthi armed attack on merchant ships in the Red Sea will have a negative impact on global supply chains and cause oil prices to rise by US$10-20. This, in turn, could have a negative impact on oil-importing countries, including India. Additionally, escalating tensions in the Red Sea have boosted safe-haven assets such as the US dollar and acted as a tailwind for the USD/INR pair.
Market participants will be closely monitoring developments in geopolitical tensions in the Middle East. Later on Tuesday, the New York Empire State manufacturing index will be released. U.S. retail sales will be in focus on Wednesday, with a 0.4% rise expected in December.
