Ella 
The Indian rupee (INR) edged lower on Wednesday, while the U.S. dollar (USD) recovered slightly. USD/INR is likely to continue trading in a tight range amid dollar inflows and potential intervention by the Reserve Bank of India (RBI).
A Deutsche Bank report shows that despite the Russia-Ukraine war last year, the Indian economy showed amazing resilience and the growth momentum was significantly better than expected. Furthermore, India is expected to achieve real GDP growth of at least 6-6.5% in the long run. This is significantly higher than similar developing countries. Investors will get more information from India’s annual GDP growth rate on Thursday and the S&P Global Manufacturing PMI for February on Friday. If stronger-than-expected economic data is released, it could boost the Indian rupee and be negative for the USD/INR pair.
Investors will focus on the U.S. fourth-quarter (Q4) gross domestic product (GDP), which will be released on Wednesday, as well as the preliminary value of the trade in goods account, and speeches by the Federal Reserve’s Bostic, Collins and Williams. Focus will turn to Thursday’s release of the core personal consumption expenditures price index (PCE), the Fed’s preferred measure of inflation.
