Ella 
The Indian rupee (INR) weakened on Tuesday. Reserve Bank of India (RBI) Governor Shaktikanta Das said last week that it would be premature to cut key policy rates before the 4% inflation target is achieved on a sustained basis. Das also said that India’s consumer price index (CPI) has fallen within the Reserve Bank of India’s target range of 2-6% from a peak of 7.8% during the conflict between Ukraine and Russia. However, new geopolitical flashpoints are emerging, and climate change and weather-related events are also affecting food prices.
Investors will focus on Wednesday’s U.S. Purchasing Managers Index (PMI) report. The preliminary US S&P Global Services PMI is expected to slow to 51.0 in January from 51.4, while the manufacturing PMI is expected to hold steady at 47.9. Attention will turn to Thursday’s annual U.S. fourth-quarter gross domestic product (GDP) rate and Friday’s December core personal consumption expenditures price index (Core PCE). Indian markets will be closed on Friday for Republic Day.
