Ella 
The Indian rupee (INR) remained strong on Monday despite a stronger US dollar (USD). Aditi Nayar, chief economist at Icra, said: “The Reserve Bank of India (RBI) is expected to maintain the monetary policy stance unchanged this week and is unlikely to change the monetary policy stance ahead of the Monetary Policy Committee (MPC) review in August 2024 till the monsoon The results, the sustainability of economic growth momentum, and the U.S. Federal Reserve’s (Fed) interest rate decision became clear.
Foreign capital inflows into India have been strong and the country’s economic growth momentum is expected to continue. While Fed officials have hinted that benchmark interest rates will be cut in the coming months, India’s economic growth and inflation trends suggest the RBI may keep interest rates high for longer. This in turn may provide some support to the Indian rupee and create headwinds for the USD/INR pair.
India’s HSBC Manufacturing Purchasing Managers’ Index (PMI) data will be released on Monday, with the index expected to remain steady at 59.2 in March. Additionally, the U.S. ISM Manufacturing Purchasing Managers’ Index will also be released later in the day. Next, the Reserve Bank of India’s interest rate decision and US March non-farm payrolls data to be announced on Friday will become the focus this week.
