Ella 
The Indian rupee (INR) strengthened on Thursday on the back of a weaker US dollar (USD) and lower US bond yields. Reserve Bank of India (RBI) Governor Shaktikanta Das will announce the bimonthly monetary policy on Thursday and key interest rates are expected to remain status quo.
The Reserve Bank of India’s Monetary Policy Committee (MPC) held a three-day meeting to take its first policy decision of 2024. Markets expect the committee to hold the repo rate steady at the current 6.5% level for the sixth consecutive time as inflation approaches the 6% tolerance limit. The Reserve Bank of India raised its economic growth forecast to 7% from 6.5% amid encouraging signs in the Indian economy such as expansion in manufacturing PMI and strong economic growth. However, escalating geopolitical tensions in the Middle East could pose a potential threat as it could lead to disruptions to Red Sea shipping, leading to higher consumer prices.
The Reserve Bank of India interest rate decision will be in focus on Thursday. Next week, attention will shift to India’s inflation data and industrial production. Investors will be watching developments in India’s inflation trajectory.
In the United States, data on the number of Americans filing initial jobless claims and wholesale inventories for the week will be released. In addition, Richmond Federal Reserve President Thomas I. Barkin will speak later Thursday.
