Indian Rupee (INR) saw a modest uptick in Monday’s subdued trading session, especially with most Asian markets closed. Investors are eagerly awaiting India’s Consumer Price Index (CPI) data for January, which is scheduled for release at 12:00 GMT, marking the beginning of the week’s focus.

The Reserve Bank of India (RBI), in its February 8 meeting, opted to maintain the repo rate at 6.50% for the sixth consecutive session, citing significant risks from food price shocks to the current disinflation trend. However, market expectations suggest that the RBI may keep its key policy rate unchanged until the June meeting, after which it may enact a series of 25 basis points (bps) rate cuts in the third and fourth quarters, a more conservative approach compared to other major central banks.

Meanwhile, the US economy’s robust performance and resistance from Federal Reserve officials against early rate cut expectations have bolstered the US Dollar (USD) and driven up US bond yields, providing support to the USD/INR pair.

Looking ahead, in addition to Monday’s CPI data, investors will also monitor Industrial Production and Manufacturing Output figures. Furthermore, Wednesday will see the release of Wholesale Price Index (WPI) data, covering food, fuel, and overall inflation for January.