Ella 
The Indian rupee (INR) recovered some of its losses on Friday. However, dollar demand from foreign and state-owned banks could curb the pair’s gains. The Indian economy’s gross domestic product (GDP) growth rate in the last quarter was the strongest among major economies. Indian Prime Minister Narendra Modi’s government has quickly lured multinational companies to build factories in India, while spending billions of dollars to improve highways, ports, airports and trains.
The International Monetary Fund (IMF) predicts that India’s GDP will grow by 6.5% in 2024. Nonetheless, a rebound in oil prices and rising domestic inflation may limit USD/INR upside.
Investors will focus on India’s S&P Global Manufacturing PMI ahead of Friday’s release of the U.S. ISM Manufacturing PMI. In addition, the Fed’s Williams, Logan, Waller, Bostic, Daly and Krueger will speak later in the day. Stronger-than-expected US PMI data could fuel speculation about a delay in interest rate cuts, which would provide some support for USD/INR.
