• Indian Rupee holds positive ground on the softer US Dollar on Tuesday. 
• The upside of the INR might be limited amid the Fed’s hawkish tone and higher crude oil prices. 
• Investors await the US Retail Sales data for fresh impetus, which is due on Tuesday. 

The Indian Rupee (INR) gains ground amid the weaker Greenback on Tuesday. The upside of the local currency might be limited as the cautious stance from US Federal Reserve (Fed) officials is likely to influence the US Dollar (USD) for the time being. Additionally, the rebound of crude oil prices might weigh on the INR. It’s worth noting that India is the third largest consumer of oil behind the US and China. 

Nonetheless, the potential foreign exchange intervention by the Reserve Bank of India (RBI) might support the Indian Rupee and cap the upside for the pair. Looking ahead, the US Retail Sales is due on Tuesday, which is estimated to improve 0.2% MoM in May. The strong consumer spending might further boost the Greenback against the INR. Apart from this, the Fed Lisa Cook, Thomas Barkin, Adriana Kugler, Lorie Logan, Alberto Musalem, and Austan Goolsbee are scheduled to speak later on Tuesday.