Anna 
The Indian Rupee (INR) exhibits strength on Monday, benefitting from the weakening of the US Dollar (USD). The positive economic outlook for India contributes to the INR’s resilience, with the International Monetary Fund (IMF) projecting robust economic growth for the country at 6.5% in both 2024 and 2025, according to its latest World Economic Outlook update.
Despite Japan unexpectedly slipping into a recession, India stands out as a ‘bright spot’ on the global economic map. The IMF forecasts that India will surpass both Japan and Germany in terms of economic output in 2026 and 2027, showcasing the country’s economic resilience and potential.
However, geopolitical tensions in the Middle East and prevailing economic headwinds pose potential challenges that could limit the upside for the INR and exert downward pressure on the currency pair.
With US markets closed on Monday due to the President’s Day holiday, market participants shift their focus to key events later in the week. The release of FOMC Minutes from the January meeting on Wednesday will be closely monitored. Additionally, attention will turn to India’s S&P Global Services PMI and RBI MPC Meeting Minutes scheduled for Thursday.
