The Indian Rupee trades in negative territory in Tuesday’s Asian session.
Higher US bond yields and further gains in crude oil prices weigh on the local currency.
The Federal Reserve’s (Fed) Chairman Jerome Powell's speech on Tuesday will be closely watched.
The Indian Rupee (INR) weakens on Tuesday amid the renewed US Dollar (USD) demand and higher US bond yields. Meanwhile, the further rise of crude oil prices amid fears of Middle East geopolitical risks exerts some selling pressure on the INR as India is the world’s third-largest oil consumer after the United States (US) and China.
Nonetheless, the optimism in the Indian economic outlook and portfolio inflows, including the country's sovereign bonds on account of their inclusion in the JPMorgan emerging market debt index, might lift the local currency and cap the pair’s upside. Investors will closely watch the speech by Federal Reserve (Fed) Chairman Jerome Powell on Tuesday for fresh impetus. On Wednesday, the attention will shift to India’s HSBC Services Purchasing Managers Index (PMI) for June. Any signs of further expansion in the Indian services sector might boost the Indian Rupee and create a headwind for the pair.
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