The Indian rupee is likely to remain closely linked to foreign fund flows and crude prices this week. The return of FPIs to Indian equities has provided support to the domestic currency, while uncertainty over energy prices remains a potential source of pressure.
Currency traders will also monitor developments around the Strait of Hormuz and expectations for US monetary policy. A sustained improvement in foreign flows could help stabilise the rupee, but a renewed spike in crude prices could quickly reverse that support.
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