India's inflation rate increases to 0.71% in November, but the Rupee continues to bleed

India's inflation rate rose to 0.71% in November, slightly above the expected 0.70%, following a record low of 0.25% in October. This increase was driven by rising prices in key categories such as vegetables, meat, and fuel, affecting the overall Consumer Price Index (CPI). After the inflation report release, the Indian Rupee (INR) momentarily strengthened but soon gave up its gains, as the USD/INR pair continues to reach new record highs. Looking ahead, upcoming US employment and CPI reports could give the US dollar a further boost, particularly if the employment figures are unexpectedly strong. A significant improvement in US-India trade relations would be needed to support a short-term rebound in the Rupee amid ongoing risks and uncertainties surrounding inflation and central bank policy responses.