USD/INR EXTENDS ITS UPSIDE AHEAD OF INDIAN, US SERVICES PMI DATA

• Indian Rupee (INR) trades on a softer note on the modest US Dollar demand.
• Analysts said global economic growth is likely to surprise on the upside, and only modest headwinds for India next fiscal.
• Investors await the Indian S&P Global Services PMI and the US ISM Services PMI for February on Tuesday.

Indian Rupee (INR) edges lower on Tuesday amid the modest rebound of the US Dollar (USD). India’s GDP grew at its fastest pace in 18 months, expanding 8.4% over a year earlier in the October-December quarter. Additionally, most high-frequency indicators continued to grow, showing signs of resilient economic activity.

Furthermore, most high-frequency indicators continued to improve, indicating strong economic activity. S&P Global Ratings Global Chief Economist, Paul Gruenwald said that global economic growth is likely to surprise on the upside, and hence he sees only modest headwinds for India next fiscal.

Market players will keep an eye on the Indian S&P Global Services PMI and US ISM Services PMI for February, due on Tuesday. Later this week, the attention will be on the Fed's Chair Jerome Powell testifying on Wednesday ahead of the US Nonfarm Payrolls (NFP) on Friday.