The Indian rupee has rallied to 82.4 per USD, up from its 83-record low on May 19th, bolstered by macroeconomic data supporting the central bank’s hawkish position. Reduced food costs led to a two-year inflation low of 4.25% in May, while industrial output surpassed the predicted 1.8% growth with a 4.2% annual rise in April, illustrating India’s robust manufacturing sector despite high-interest rates. However, potential El Nino weather effects on food prices might destabilize inflation, fostering interest rate cut predictions only in 2024.