Ella 
The Indian rupee remained flat on Tuesday despite a stronger dollar following an uptick in the US ISM manufacturing purchasing managers’ index (PMI). The Reserve Bank of India will hold its first bi-monthly monetary policy meeting from Wednesday to Friday. Various polls suggest the Reserve Bank of India will keep the repo rate steady at 6.50% at its upcoming meeting as it weighs the prospects of strong domestic growth and food inflation woes, while Fed officials hinted at a possible rate cut later this year . Talk of India maintaining high interest rates for the long term could boost the Indian rupee and boost USD/INR.
Looking ahead, market participants will focus on India’s HSBC Manufacturing Purchasing Managers’ Index (PMI) data due out on Tuesday, with the indicator expected to remain steady at 59.2 in March. The focus will be on Friday’s Reserve Bank of India interest rate decision and US March non-farm payrolls data.
