Ella 
The Indian rupee (INR) traded stronger on Monday after it closed at its highest level in two months. Positive domestic stock markets and fresh foreign inflows are likely to provide some support to the Indian currency. Additionally, U.S. dollar (USD) inflows helped mitigate the impact of declines in Asian peers.
However, a rebound in crude prices amid ongoing geopolitical tensions in the Middle East could put pressure on the local currency as India is the world’s third-largest oil consumer. Investors were bracing for preliminary readings from the HSBC Purchasing Managers’ Index (PMI) for India, due later on Monday. On the US schedule, preliminary data from the US S&P Global PMI will be released.
The Indian rupee is gaining as foreign investors (FPIs) turned net buyers for the second time this week, stepping up their buying on the equity side and also making large purchases on the debt side, forex traders said.
“Considering the current market dynamics, the USD/INR pair is expected to trade between 86.00 and 86.80 in the near term. However, considering the prevailing global headwinds, a slight rebound is expected towards the 86.50-86.60 range,” said Amit Pabari, managing director, CR FX Advisors.
Trump has declared April 2 “Liberation Day” in the United States, when he will implement so-called reciprocal tariffs aimed at equalizing U.S. tariffs with those of trading partners, as well as tariffs on industries such as autos, pharmaceuticals and semiconductors that he has repeatedly said he would implement on that day.
The Trump administration said it would revoke the temporary legal status of more than 500,000 immigrants from Cuba, Haiti, Nicaragua and Venezuela, the BBC reported. The immigrants have been warned to leave the United States by April 24 to avoid having their permits and deportation protections revoked.
Fed policymakers expect two 25 basis point rate cuts later this year, unchanged from their median forecast in December.
You Might Be Interested In:
