The Indian Rupee weakens, snapping the three-day winning streak in Wednesday’s early Asian session.
Strong USD demand from importers and outflows from equities have weighed on the INR.
Investors will monitor the advanced Indian August HSBC PMI data and the RBI’s MPC Minutes, which are due on Thursday.
The Indian Rupee (INR) loses ground on Thursday, pressured by concerns about importers' US Dollar (USD) demand and foreign equity outflows. Nonetheless, the further decline of crude oil prices might underpin the INR as India is the world’s third-largest oil consumer and importer. The downside of the INR might also be limited amid the likely intervention from the Reserve Bank of India (RBI), which might sell USD to stabilize the Indian Rupee.
Traders will keep an eye on the first reading of the Indian August HSBC Purchasing Managers Index (PMI) reports on Thursday, along with the RBI Monetary Policy Committee (MPC) Minutes. On the US docket, the preliminary US S&P Global Purchasing Managers Index (PMI) for August is due later in the day. Meanwhile, rising expectations of a Federal Reserve interest rate cut in September could drag the Greenback lower.
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