• Indian Rupee trades on a positive note on Friday.
• Rising oil prices and higher US Treasury bond yields could weigh on the INR, limiting the downside of USD/INR.
• The Indian March CPI inflation report and US April Michigan Consumer Sentiment Index will be in the spotlight on Friday. 

Indian Rupee (INR) posts modest gains on Friday amid strong selling interest in the US Dollar (USD) and light demand from importers. The recovery of INR is bolstered by the robust Indian economic performance and positive longer-term outlook. However, the rise in oil prices and higher US Treasury bond yields might drag the INR lower and cap the downside of USD/INR.

Investors will keep an eye on the Indian CPI inflation report for March and Industrial Production for February, due on Friday. A hotter-than-expected Indian inflation data could further boost the INR. On the US docket, the preliminary US Michigan Consumer Sentiment Index for April will be released later, along with the Fed's Bostic and Daly speech.