USD/INR holds positive ground amid geopolitical risks

• The Indian Rupee edges lower in Tuesday’s Asian trading hours. 
• Outflows from Indian equities, higher oil prices and a stronger US Dollar undermine the INR. 
• Traders await Fedspeak ahead of the RBI rate decision. 

The Indian Rupee (INR) weakens on Tuesday amid the selling pressure from foreign funds and weak tone in the domestic markets. Additionally, the rise in crude oil prices and escalating geopolitical tensions between Israel and Iran contribute to the INR’s downside. 

Traders will keep an eye on the speeches from the US Federal Reserve’s (Fed) Raphael Bostic, Phillip Jefferson and Susan Collins on Tuesday. Any dovish comments from the Fed officials could weigh on the Greenback and cap the downside for the local currency. On Wednesday, the Reserve Bank of India (RBI) interest rate decision will take center stage.