Indian Rupee trades on a stronger note on Thursday.
Rising oil prices and higher expectations that the Fed will delay rate cuts weigh on the INR.
Investors await the Initial Jobless Claims, Philly Fed Manufacturing Index, Existing Home Sales, and Fed speakers on Thursday.
Indian Rupee (INR) recovers some lost ground on Thursday. The INR dropped to a record low on Wednesday, weighed by the worries that escalating tensions in the Middle East could disrupt supplies and boost oil prices. India is the third-largest consumer and importer of crude oil. Therefore, higher oil prices could damage the economy and put pressure on INR. Furthermore, the growing expectations that the Federal Reserve (Fed) will delay rate cuts provide some support to the Greenback and create a tailwind for the USD/INR pair. However, the further upside of the pair might be limited due to the potential intervention from the Reserve Bank of India (RBI) to prevent local currency from depreciation.
Market participants will keep an eye on the usual weekly Initial Jobless Claims, the Philly Fed Manufacturing Index, and Existing Home Sales, due on Thursday. Also, the Fed’s Bowman, Williams, and Bostic are set to speak later in the day. On Friday, the RBI Monetary Policy Committee (MPC) Meeting Minutes will be released.
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