Ella 
The Indian rupee found support on Monday amid weakness in the US dollar. The Indian rupee may have limited upside after hitting a record low last week, pressured by sustained dollar demand from oil importers and outflows from local equities. In addition, rising geopolitical risks in the Middle East may boost the safe-haven dollar ahead of important events in the United States this week. On the other hand, traders expect the Reserve Bank of India (RBI) to continue to intervene in the foreign exchange market to limit volatility. This, in turn, could limit the upside for USD/INR in the short term.
The Federal Reserve’s interest rate decision will be in focus on Wednesday, and rates are not expected to change. Investors will judge the future direction of U.S. interest rates from a speech by Federal Reserve Chairman Jerome Powell. Dovish comments from Fed officials or expectations of a rate cut by the Fed in September could drag the dollar lower. Later in the week, focus will turn to India’s HSBC Manufacturing PMI on Thursday and U.S. July non-farm payrolls data on Friday.
