USD/INR rebounds despite Fed’s aggressive rate cut

• Indian Rupee weakens in Thursday’s Asian session. 
• The increased liquidity flowing into the Indian market and dovish Fed drag the US Dollar down.
• Traders await the US weekly Initial Jobless Claims, the Philly Fed Manufacturing Index and Existing Home Sales on Thursday. 

The Indian Rupee (INR) loses ground amid the recovery of the US Dollar (USD) on Thursday. The downside of the INR might be limited after the US Federal Reserve (Fed) made a large rate cut at its September meeting, which might weaken the US Dollar (USD). Furthermore, the persistent Foreign Institutional Investor (FII) funds into Indian equities could further strengthen the local currency. 

Nonetheless, further rebound in crude oil prices could undermine the INR as India is the third-largest oil consumer after the United States (US) and China. Moving on, investors await the US weekly Initial Jobless Claims, the Philly Fed Manufacturing Index and Existing Home Sales, which are due later on Thursday.