USD/INR trades sideways around 82.60 ahead of US data and India GDP

USD/INR trades sideways around 82.60 during the Asian session on Tuesday as market participants prepare for forthcoming data releases from India and the United States (US). Furthermore, the positive sentiment stemming in the Asian regional markets from China's economic stimulus actions is favoring the Indian Rupee (INR) buyers.

Beijing implemented a reduction of 0.1% in the stamp duty on stock trading. Additionally, traders are closely monitoring the visit of US Commerce Secretary Gina Raimondo to China, with the aim of strengthening trade relations between the United States and China. The stability in China's economy could contribute to support for the Indian Rupee (INR) buyers.

Investors await upcoming data releases from the US, seeking fresh impetus on the US economic outlook. These datasets include Jolts Job Openings, Housing Price Index, and Consumer Confidence scheduled to be unveiled later in the day.

During the week, US Core Personal Consumption Expenditures (PCE) Index, weekly Jobless Claims, and Nonfarm Payrolls will be in focus. Likewise, India’s Gross Domestic Product (GDP) is expected to improve in the second quarter report, which is due to be released on Thursday.

Additionally, an inquiry conducted by India's market regulator into the Adani group has revealed instances of breaches in regulations concerning disclosures by listed entities and limits on offshore fund holdings. The Securities and Exchange Board of India (SEBI) initiated the investigation following concerns raised by US-based Hindenburg Research regarding governance issues surrounding the Adani group. The situation could potentially exert pressure on Indian equities, possibly leading to support for the USD/INR pair.

The US Dollar Index (DXY), gauging the Greenback's performance against six other major currencies, trades lower around 103.80. The decline in the US Treasury yield is undermining the US Dollar (USD) due to a prevailing sense of caution, following the support for the hawkish stance by the US Federal Reserve Chair Jerome Powell.