Ella 
The Indian rupee was flat on Monday amid dollar consolidation. Traders have become cautious amid geopolitical risks. According to ABC News, the United States is strengthening its capabilities in the region by sending an additional missile submarine to the Middle East “in view of heightened regional tensions.” This could boost safe-haven currencies like the U.S. dollar (USD) in the short term. However, possible intervention by the Reserve Bank of India (RBI) may support the local currency and limit the pair’s significant upside.
Looking ahead, traders will focus on consumer price index (CPI) and industrial production data from India. In the United States, producer price index (PPI), consumer price index (CPI) and retail sales data will be released later this week. Weak inflation data may reinforce expectations that the Federal Reserve (Fed) will soon begin cutting interest rates, dragging the dollar lower.
