• Indian Rupee trades on a softer note on US Dollar demand. 
• The higher-for-longer interest rate narrative in the US might lift the USD and cap upside in the INR.
• The US GDP growth number for Q4 will be due on Wednesday. 

Indian Rupee (INR) edges lower on Monday amid US Dollar (USD) demand from oil companies and other importers. The hawkish comments from Fed officials about keeping the policy rate higher for longer might cap any substantial upside in the INR. However, the potential intervention from the Reserve Bank of India (RBI) might curb excess volatility in the INR. 

According to the minutes of the RBI's latest policy meeting, the MPC agreed that the Indian economy is currently showing resilience on the growth front. However, the uncertainty, food inflation volatility, and geopolitical spillovers could cap the upside of the INR. 

Investors await the US Gross Domestic Product Annualized for the fourth quarter (Q4) on Wednesday and the Core Personal Consumption Expenditures Price Index (Core PCE) on Thursday. On the Indian docket, the GDP annual growth numbers and Federal Fiscal Deficit will be released on Thursday. The Indian S&P Global Manufacturing PMI for February will be published on Friday