USD/INR extends the rally ahead of Indian/US PMI data
- Indian Rupee softens in Tuesday’s Asian session.
- The renewed USD demand, volatile crude oil prices, foreign outflows of funds undermine the INR.
- The HSBC India Manufacturing PMI and US ISM Manufacturing PMI for September will be in the spotlight on Tuesday.
The Indian Rupee (INR) trades in negative territory for the third consecutive day on Tuesday. The downtick of the local currency is pressured by strong US Dollar (USD) demand from foreign banks. Additionally, the volatile crude oil prices amid rising tensions in the Middle East and the outflow of foreign funds contribute to the INR’s downside.
However, the anticipation of additional interest rate reduction by the Federal Reserve might cap the upside for the pair. Investors will keep an eye on the US ISM Manufacturing Purchasing Managers Index (PMI), which is due on Tuesday. Also, the Fed’s Raphael Bostic and Lisa Cook are scheduled to speak. On the Indian front, HSBC India Manufacturing PMI for September will be released.
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