• The Indian Rupee weakens in Tuesday’s Asian session. 
• Significant foreign institutional investor (FII) outflows and higher US bond yields undermine the INR. 
• The RBI's FX intervention might help limit the INR’s losses. 

The Indian Rupee (INR) softens on Tuesday, pressured by sustained foreign outflows from domestic stocks and the rising US bond yields on the back of rising odds of Donald Trump winning the US presidential election. However, the fall in crude oil prices could provide some support to the local currency. The significant depreciation of the INR might be limited as the Reserve Bank of India (RBI) is likely to sell the USD via public sector banks to support the local currency.

Traders will closely monitor the key US economic data released this week, including the advanced US Gross Domestic Product (GDP) Annualized for the third quarter (Q3), the Personal Consumption Expenditures (PCE) Price Index for September and the highly anticipated US Nonfarm Payrolls (NFP).