The Indian rupee, which initially rallied following JPMorgan’s inclusion of Indian bonds in its index, weakened to 83.12 against the US dollar amid dollar demand from importers and high US yields. Month-end dollar demand from importers, including oil companies, is expected to keep the rupee under pressure, although the Reserve Bank of India (RBI) is likely to intervene to prevent it from weakening below 83.20. While the rupee had briefly strengthened to 82.8225 on the news of inclusion in JPMorgan’s emerging market debt index, concerns about US yields have dampened the rally. Investors are now closely watching US GDP data and core PCE inflation numbers for further cues on the Federal Reserve’s policy actions.