The Indian Rupee edges higher in Thursday’s Asian session.
The persistent Indian foreign inflows and a fall in crude oil prices support the INR.
The US June Consumer Price Index (CPI) inflation data will be the highlight on Thursday.
The Indian Rupee (INR) strengthens on the softer US Dollar (USD) on Thursday. Additionally, the sustained inflow of foreign funds into Indian markets and the decline of crude oil prices all contribute to the INR's upside. The upside of the pair remains capped amid the potential rate cuts by the US Federal Reserve (Fed), even though Fed Chair Jerome Powell said the labor market was better balanced and acknowledged progress on cooling inflation without committing to rate cuts.
Nonetheless, the renewed Greenback demand from importers due to high oil price pressures might undermine the local currency as India is the third largest consumer of crude oil in the world, after the United States and China. Later on Thursday, investors will closely monitor the release of the US Consumer Price Index (CPI) inflation data for June. Further progress on inflation could lead to key changes in their policy statement that pave the way for a September rate cut.
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