Ella 
The Indian rupee (INR) traded flat on Tuesday, with a slightly positive outlook. The Indian rupee resumed its gains against the US dollar, becoming the best-performing currency in Asian markets in January 2024, supported by foreign portfolio inflows. According to a review report by the Indian Finance Ministry, the Indian economy has remained resilient amid global challenges due to strong domestic demand, investment-led strategy and macroeconomic stability.
India is on track to become the world’s third-largest economy, with gross domestic product (GDP) expected to hit $5 trillion in the next three years, the finance ministry said. However, external risks posed by stalemate inflation, weak growth and fiscal pressures in the global economy, coupled with ongoing tensions around the Red Sea, could become potential threats.
Next, investors will keep a close eye on Wednesday’s January meeting of the Federal Open Market Committee (FOMC), which is widely expected to keep key interest rates steady for the fourth consecutive time. On Thursday, India will unveil its interim budget for the financial year 2024-25.
