• Indian Rupee loses momentum on the firmer USD, higher crude oil prices. 
• India's retail inflation has eased to a three-month low in January from December's four-month high of 5.69%.
• India’s Wholesale Price Index (WPI) Food, Fuel, and Inflation for January will be the highlight on Tuesday ahead of US CPI data.

Indian Rupee (INR) weakens on Tuesday amid a stronger US Dollar (USD) and a bounce back in crude oil prices. The Indian economy showed evidence of resilience at the start of the year, with Industrial Production improving and inflation falling, according to data published on Monday.

India's inflation dropped to a three-month low in January due to the cooling of food prices. The inflation rate has stayed within its tolerance range of 2–6% for the fifth consecutive month. Food inflation came in at 8.30% in January versus 9.53% in December. 

The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) maintained its inflation forecast for FY24 at 5.4% at its February meeting, despite  concerns on rising food prices and uncertainty around crude oil prices. The Indian central bank further stated that it expects inflation to reach 5% in the current quarter ending March 31.

Looking ahead, India’s Wholesale Price Index (WPI) Food, Fuel, and Inflation for January will be released on Wednesday. On the US front, market players will closely monitor the January CPI report on Tuesday. Later this week, the Retail Sales and Producer Price Index (PPI) for January will be due on Thursday and Friday, respectively