USD/INR FLAT-LINES AHEAD OF INDIAN SERVICES PMI

• Indian Rupee remains flat on Monday despite the modest rebound of the USD. 
• India’s upbeat GDP growth in the October-December quarter boosts the INR and caps the pair’s upside. 
• Market players will focus on the Indian February S&P Global Services PMI, due on Tuesday.

Indian Rupee (INR) trades on a flat note on Monday. The upside of INR is bolstered by data showing India’s GDP growth in the October-December quarter considerably above forecasts. India's economy grew at its fastest pace in one-and-a-half years in the December quarter, with the economy expanding by 8.4%, against the 6.6% anticipated.

On the other hand, the renewed US Dollar (USD) demand and the prospect of delayed rate cut expectations from the Federal Reserve (Fed) might weigh on the Indian Rupee in the near term. Nonetheless, analysts said that the pair is likely to remain in a narrow band this year as the Reserve Bank of India (RBI) monitors foreign exchange markets closely and intervenes when necessary to prevent excessive volatility in the exchange rate. 

The Indian S&P Global Services PMI for February will be due on Tuesday. Investors will closely watch Fed's Chair Jerome Powell testify on Wednesday, which might offer some hints about a broad overview of the economy and monetary policy. On Friday, the US employment data will be released, including the Nonfarm Payrolls (NFP), Average Hourly Earnings, and Unemployment Rate.