Anna 
The Indian Rupee (INR) extended its downward trend on Thursday, despite the weakening of the US Dollar (USD). The USD gained traction against its counterparts amid growing speculation that the US Federal Reserve (Fed) might postpone interest rate cuts. This sentiment limited the upside potential for the INR.
However, the appreciation of the USD against other currencies may be tempered by a further decline in crude oil prices. Easing tensions surrounding potential conflicts between Iran and Israel contributed to the decrease in oil prices, providing some relief for import-dependent economies like India.
Investors are keeping a close watch on key economic indicators, including the US preliminary Gross Domestic Product (GDP) Annualized for the first quarter (Q1). The GDP report will provide insights into the strength of the US economy and may offer clues about the Fed’s future monetary policy decisions. Additionally, the final reading of the US March Personal Consumption Expenditures Price Index (PCE) on Friday will be closely monitored for indications of inflationary pressures.
In the Indian context, the ongoing general election, which began on 19 April and will continue until 1 June, remains a focal point for investors. The outcome of the election will likely have significant implications for economic policies and market sentiment in India.
