Indian Rupee weakens in Thursday’s early Asian session, pressured by a sell-off in Indian equities.
RBI’s intervention and lower crude oil prices might cap the INR’s downside.
Investors await the US ISM Services PMI, which is due later on Thursday.
The Indian Rupee (INR) extends its downside on Thursday despite the weaker US Dollar (USD). A sell-off in domestic equities tracking global cues weighed on the INR, dragging the local currency to near all-time lows. However, the possible intervention by the Reserve Bank of India (RBI) through USD sales might prevent the Indian Rupee from breaching the 84 mark. Additionally, a fall in crude oil prices could help limit the INR’s losses as India is the world's third-largest oil-consuming and importing nation.
The US ISM Services Purchasing Managers Index (PMI) is due later on Thursday, which is estimated to ease to 51.1 in August from 51.4 in July. On Friday, the attention will shift to the US Nonfarm Payrolls (NFP) for August. This event might offer some cues about the size and pace of rate cuts by the Federal Reserve (Fed) this year.
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