Ella 
The Indian rupee (INR) traded in positive territory on Tuesday on the back of a weaker US dollar. The appreciation of the Indian rupee was helped by good moves in domestic equities, with India’s benchmark index reaching new highs. Foreign inflows into Indian equities are expected to be a significant driver for the Indian rupee this week as investors await the outcome of India’s June 4 general election.
Investors will pay close attention to India’s fourth-quarter 2023 gross domestic product (GDP) due on Friday, with growth expected to slow to 6.7% from 8.4% in the fourth quarter. If growth falls short of expectations, it could put some pressure on the Indian rupee. In the U.S., the final April personal consumption expenditures price index (PCE) will be in focus on Friday. Higher-than-expected PCE inflation data could reduce expectations for a rate cut from the Fed and boost the dollar.
