Indian Rupee (INR) snaps the three-day winning streak on Monday. The hawkish tone of Federal Reserve (Fed) officials has prompted investors to dial back interest rate cut expectations, which boosts the US Dollar (USD). Additionally, the fear of oil supply disruption due to the ongoing geopolitical tensions in the Middle East has exerted some selling pressure on the INR as India is heavily dependent on oil imports. Nonetheless, the downside of INR might be capped due to the possibility that the Reserve Bank of India (RBI) would intervene heavily again to prevent the INR from depreciation.

Market players will focus on the preliminary India’s HSBC Purchasing Managers Index (PMI) for April, due on Tuesday. On the US docket, the Federal Reserve (Fed) will not speak during the blackout period. The S&P Global PMI for April will be released on Tuesday. The first reading of Gross Domestic Product (GDP) Annualized for the first quarter (Q1) will be published on Thursday.

• Indian Rupee kicks off the new week on a positive note on Monday.
• The speculation that the Fed will delay the interest rate cuts and the rising Middle East tension boosted the Greenback. 
• Indian HSBC PMI data for April will be due on Tuesday.