USD/INR ends down as higher risk appetite post G-20 boosts foreign inflow hopes

The rupee settled at 68.9450 against 69.0150 at the previous close. The local unit moved in 68.82-69.0825 per dollar band intra-day.
USD/INR ends down as higher risk appetite post G-20 boosts foreign inflow hopes. Dollar/rupee is likely to remain sideways with a downward bias on Monday pressured by the likelihood of foreign inflows to local stocks while the overall dollar strength and the rise in crude oil prices extend support amid caution ahead of the July 5 India Budget. The rupee positivity post G-20 is likely to stay given the inflow prospects, at least for today

The dollar rose to one-week highs against a currency basket on Monday as a trade truce between the U.S. and China dampened demand for safe haven currencies, such as the yen and the Swiss franc. After meeting Chinese President Xi Jinping in Japan on Saturday on the sidelines of Group of 20 summit, U.S. President Donald Trump said he would hold back on new tariffs and that China will buy more farm products.
China's offshore yuan rose more than 0.5% to as high as 6.8165 yuan per dollar, near a two-month high, before easing back to 6.8464 after disappointing factory activity data. Rose 0.4% against a basket of currencies, its index hitting 96.601 (DXY). Versus the euro it rose 0.4% to $1.1328 .

Oil prices were up on Monday as OPEC and its allies looked on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.
Gold prices fell nearly 2% on Monday to their lowest in more than a week as the dollar strengthened and investors opted for riskier assets after the United States and China agreed to restart trade talks. U.S. gold futures GCv1 dipped 1.8% to $1,388.20 an ounce.

Date	Time	Currency	Event	Actual	Forecast	Previous
1/7/2019	13.25	Euro	German Manufacturing PMI (Jun)	45.0	45.4	45.4

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