Ella 
The Indian rupee was in negative territory during the Asian session on Tuesday.
Rising US bond yields and further gains in crude oil prices weighed on USD/INR.
Fed Chairman Powell’s speech on Tuesday will be closely watched.
The Indian rupee was weak on Tuesday amid a pick-up in US dollar demand and rising US bond yields. Meanwhile, concerns about further gains in crude oil prices due to geopolitical risks in the Middle East also put some selling pressure on the Indian rupee, as India is the world’s third-largest oil consumer after the US and China.
However, positive economic outlook for India and portfolio inflows, including into Indian sovereign bonds due to inclusion in the JPMorgan Emerging Markets Debt Index, could boost the Indian rupee and halt upside in USD/INR. The focus on Tuesday is on Fed Chairman Powell’s speech to find fresh momentum. On Wednesday, the focus will shift to India’s HSBC Services Purchasing Managers’ Index (PMI) for June. Any signs of further expansion in the Indian services sector could boost the Indian rupee and weigh on USD/INR.
