Anna 
The Indian Rupee (INR) exhibited a recovery of lost ground on Friday, propelled by the notable pace of GDP growth in the Indian economy, which emerged as the strongest among major economies in the last quarter. Prime Minister Narendra Modi’s administration’s proactive efforts to attract multinational corporations for establishing factories, coupled with substantial investments in infrastructure development, have contributed to this economic resilience.
The International Monetary Fund (IMF) predicts a 6.5% growth in India’s GDP for 2024, reflecting optimism about the country’s economic trajectory. However, the potential cap on the USD/INR pair’s upside stems from the rebound in oil prices and the persistence of elevated domestic inflation.
Investor attention remains focused on the US ISM Manufacturing PMI Index scheduled for release on Friday. Additionally, speeches by several Federal Reserve officials, including Williams, Logan, Waller, Bostic, Daly, and Kluger, are anticipated later in the day. The USD/INR pair’s trajectory may be influenced by the outcome of the US PMI data, with stronger-than-expected results sparking speculation about potential delays in interest rate cuts. Such speculation could lend support to the US Dollar and limit gains in the USD/INR pair.
