• Indian Rupee loses momentum on Thursday despite the weaker USD. 
• The rise in crude oil prices and higher US Treasury bond yields exert some selling pressure on the INR. 
• The final reading of Indian HSBC Services PMI for March is due on Thursday.

Indian Rupee (INR) extends its downside on Thursday. The rise in crude oil prices to their highest levels since October amid the ongoing geopolitical tensions in the Middle East, along with higher US Treasury bond yields, weighs on the INR. Nonetheless, the USD/INR’s upside might be capped by the dovish remarks from the Federal Reserve (Fed) and the possible foreign exchange intervention from the Reserve Bank of India (RBI) to keep the domestic currency relatively strong. 

Investors will monitor the final reading of the Indian March HSBC Services PMI on Thursday. The attention will shift to the RBI interest rate decision on Friday. The Indian central bank is likely to keep its key repo rate steady at 6.50% at its April meeting and maintain its stance of withdrawal of accommodation, according to a majority of analysts. On the US docket, the US February Goods Trade Balance and weekly Initial Jobless Claims will be released on Thursday. On Friday, the US employment data, including Nonfarm Payrolls (NFP), Unemployment Rate, and Average Hourly Earnings for March, will be closely watched.