• Indian Rupee loses momentum in Friday’s early Asian session.
• The elevated geopolitical risks and weak Indian domestic markets undermine the INR. 
• The preliminary US August Michigan Consumer Sentiment Index will be the highlight on Friday. 

Indian Rupee (INR) edges lower on Friday due to the modest recovery of the US Dollar (USD). Risk aversion in the global markets amid escalating geopolitical tension in the Middle East dampens the sentiment and undermines the INR. Additionally, the weak domestic markets and India’s foreign outflows are likely to weigh on the local currency in the near term.  

On the other hand, the lower crude oil prices could support the INR as India remains one of the top importers of crude oil. The speculation of the US Federal Reserve (Fed) rate cut in September might exert some selling pressure and act as a headwind for the pair. Later on Friday, investors will keep an eye on the preliminary US Michigan Consumer Sentiment Index for August, Building Permits and Housing Starts. Also, the Fed's Austan Goolsbee is scheduled to speak.