USD/INR trades firmly on stronger USD, all eyes on Fed decision

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• Indian Rupee struggles to gain on the stronger USD.
• The Reserve Bank of India (RBI) Governor highlighted the optimistic view for the Indian economy.
• Investors will closely monitor the Federal Open Market Committee (FOMC) policy meeting on Wednesday.

Indian Rupee ticks lower on Wednesday on the renewed US Dollar (USD) demand. That being said, the higher-for-longer US interest rate narrative has lifted US Treasury bond yields to multi-year highs, which acts as a tailwind for the pair. Elevated geopolitical risks in the Middle East might also lead to higher oil prices and impact Indian importers.