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The Indian Rupee gains traction in Monday’s Asian session. Routine RBI intervention and lower oil prices underpin the INR; foreign outflows and renewed USD demand might cap its upside. Investors await Donald Trump’s presidential inauguration on Monday at 17:00 GMT. The Indian Rupee (INR) strengthens on Monday after logging its worst week in 18 months in the previous week. The frequent interventions by the Reserve Bank of India (RBI) and a decline in crude oil prices could help prevent sharper losses of the local currency. On the other hand, persistent foreign portfolio outflows and heightened US Dollar (USD) bids in the non-deliverable forwards (NDF) market might weigh on the INR. Investors will closely monitor the announcement of President-elect Donald Trump’s policies ahead of his inauguration at 17:00 GMT. The expectations of tariff policies under the Trump administration might drag the emerging market currencies, including the INR. Indian Rupee recovers ahead of Trump’s inauguration India’s foreign exchange reserves dropped for the sixth consecutive week, reaching a 10-month low of $625.9 billion for the week ended January 10, according to the Reserve Bank of India (RBI). Analysts noted that the Indian central bank has been cautious in deploying reserves to contain undue currency volatility amid strong global challenges. The foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund (IMF). India’s economy is projected to grow by 6.7% in the next fiscal year starting in April, slightly higher than in the current fiscal year, according to the World Bank. The country’s growth rate in the current fiscal year is at 6.5%, down from 8.2% in the previous period. US Housing Starts climbed by 15.8% from 1.294 million (revised from 1.289 million) to 1.499 million in December, beating the estimation of 1.32 million. The US Building Permits declined by…