Ella 
The Indian rupee (INR) traded in negative territory on Thursday as month-end demand for the US dollar (USD) increased. Some traders have speculated that the Reserve Bank of India (RBI) may be actively acquiring the U.S. dollar in recent sessions, which could limit the pair’s movements in a tight range. However, strong economic fundamentals, falling oil prices and easing domestic inflation may provide some support to the Indian rupee.
India’s statistics department will release GDP data for October-December 2023 on Thursday, which is expected to slow to 6.5% from 7.6% in the previous quarter. If the report shows stronger-than-expected results, this could boost the Indian rupee and put pressure on the USD/INR pair.
The U.S. core personal consumption expenditures index (Core PCE) for January, the Fed’s preferred inflation gauge, will take center stage on Thursday. In addition, U.S. personal income, personal spending, existing homes for sale and weekly initial jobless claims will be released later in the day. In India, Q3 GDP quarterly and annual GDP will be released on Thursday, which will provide a new catalyst for the USD/INR pair.
