Ella 
The Indian rupee pared recent gains on renewed demand for the U.S. dollar.
Bank selling of the dollar, lower crude oil prices and an improving outlook for India’s economic growth may limit the rupee’s losses.
Investors will pay close attention to Wednesday’s U.S. March inflation report and Federal Reserve meeting minutes.
The Indian rupee lost momentum on Wednesday as the US dollar rebounded modestly. Markets turned cautious ahead of key U.S. inflation data, as U.S. inflation is expected to remain at high levels. However, dollar selling by foreign and state-owned banks, falling crude oil prices, and improving economic growth prospects in India may provide some support to the Indian rupee and limit USD/INR upside.
The March US Consumer Price Index (CPI) report and the release of the Federal Reserve meeting minutes will be the focus on Wednesday. These events may provide some signals about inflation trends and the path of the Fed’s monetary policy. In India, markets will be closed on Thursday for Eid al-Fitr. Market attention will turn to India’s March inflation report and February industrial production report due on Friday.
