• Indian Rupee gains traction in Friday’s Asian session. 
• Softer USD and portfolio inflows support the INR, while higher crude oil prices might cap its upside. 
• Investors await the Fed’s Harker speech on Friday. 

The Indian Rupee (INR) extends its upside on the weaker US Dollar (USD) on Friday. The INR trades near the two-month highs, bolstered by likely portfolio inflows and an appreciation in the Chinese Yuan after the US Federal Reserve (Fed) began its easing cycle with an unexpected 50 basis point rate cut at its September meeting. Additionally, the USD sales likely from large foreign banks on behalf of custodial clients contribute to the local currency’s upside. 

However, the further rise in crude oil prices might limit the upside for the INR as India is the third-largest oil consumer after the United States (US) and China. The Fed Philadelphia President Patrick Harker is scheduled to speak later on Friday.