• The Indian Rupee may receive support from expected foreign inflows into domestic equities following US Consumer Price Index data.
• Traders expect RBI interventions to prevent the INR from weakening beyond the 84.00 level.
• The US inflation report has increased the odds of a 25-basis points rate cut by the Fed in September.

The USD/INR pair moves sideways on Thursday as traders speculate potential market interventions by the Reserve Bank of India (RBI) to prevent the Indian Rupee (INR) from weakening beyond the 84.00 level. Traders await Consumer Price Index and Industrial Output data from India scheduled to be released later in the day.

Additionally, subdued crude Oil prices provide support for the Indian Rupee against the US Dollar (USD). India, the world’s third-largest Oil importer, stands to benefit from lower import costs. Concerns over weakened Oil demand have offset the impact of Hurricane Francine on the United States (US) Oil production, the world's largest crude producer.

The Indian Rupee may receive support from the expected rise in foreign inflows into domestic equities following August’s US Consumer Price Index (CPI) data. This US inflation report has heightened the likelihood that the Federal Reserve (Fed) will begin its easing cycle with a 25-basis points interest rate cut in September.