Ella 
The Indian rupee rebounded on Thursday amid a weaker US dollar.
Fresh dollar selling and possible FX intervention by the Reserve Bank of India supported the Indian rupee.
Any progress around India’s structural reforms could weigh on the Indian rupee.
The US weekly initial jobless claims and trade balance will be released later on Thursday.
The Indian rupee (INR) rebounded on Thursday against the backdrop of a weaker US dollar. The Indian rupee closed stronger on Wednesday as foreign banks sold dollars and the Reserve Bank of India (RBI) could intervene. Moreover, investors began to price in two rate cuts by the Federal Reserve (Fed) this year, which weighed on the US dollar and acted as a headwind for USD/INR.
The US weekly initial jobless claims and trade balance will be released on Thursday. Investors will be closely watching the Reserve Bank of India’s interest rate decision on Friday, with no change in rates expected. Moreover, US non-farm payrolls data will also be in focus. Stronger-than-expected data could boost the US dollar and limit the downside for USD/INR. Meanwhile, India faces multiple headwinds from political changes and pessimistic PMI data. If there is a change in India’s structural reforms, this could exert some selling pressure on the Indian rupee.
