Ella 
The Indian rupee weakened on Friday amid a modest recovery in the US dollar. Despite easing political uncertainties following India’s general election, renewed demand for the dollar from local importers and outflows of Indian stocks could weigh on the Indian rupee in the near term. On the other hand, potential intervention by the Reserve Bank of India could support the Indian rupee and limit upside for the USD/INR pair.
Investors will be closely watching the Reserve Bank of India’s rate decision on Friday, where it is expected to keep rates unchanged. The last time the Reserve Bank of India’s Monetary Policy Committee (MPC) adjusted its benchmark rate was in February 2023. In the US, employment data will be closely watched, including the non-farm payrolls (NFP), unemployment rate, and average hourly earnings for May. A weaker-than-expected NFP could fuel speculation of a rate cut by the Federal Reserve (Fed), weighing on the USD/INR pair and being bearish for the USD/INR pair.
