• The Indian Rupee gains ground in Thursday’s Asian session. 
• The strengthening of the USD and higher bond yields might cap the INR’s upside. 
• The US Fed interest rate decision will take center stage on Thursday. 

The Indian Rupee (INR) rebounds on Thursday. Nonetheless, the upside of the local currency might be limited amid a rally in the US Dollar (USD) and higher bond yields, which are bolstered by Donald Trump’s victory in the US presidential elections. Market participants expect the INR to trade in the range on Thursday as the Reserve Bank of India (RBI) is expected to intervene in the market by selling the USD to avoid excess volatility. 

Meanwhile, persistent foreign fund outflows amid bond and foreign exchange volatility could exert some selling pressure on the INR in the near term. Investors will closely monitor the US Federal Reserve (Fed) meeting on Thursday, which is expected to cut interest rates by 25 basis points (bps). Also, the US weekly Initial Jobless Claims will be released.