USD/INR ends down on weak dlr, likely FPI inflows into local debt

The rupee settled at 68.5375 against 68.68 at the previous close. The local unit moved in 68.50-68.5975 per dollar band intra-day.
Dollar/rupee ended down Monday on selling by foreign banks tracking a weak greenback amid likely overseas inflows into local debt. Foreign banks were on the sell-side. Dollar still remains weak on hopes of a Fed rate cut. Also, FPI flows into local debt segment further aided demand for local currency. Dollar/rupee ended at Rs 68.53/$1 Monday compared to previous close of Rs 68.68/$1. The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 96.80 with 97.06 at close.

The euro remained within its recent trading range against the dollar on Monday, its progress capped by expectations for a dovish European Central Bank meeting next week and after investors turned more bearish on the currency. Money markets have priced in an ECB rate cut of 10 basis points in September and another one in March. The meeting on July 25 may reinforce those expectations. The euro EUR=EBS was up 0.08% at $1.1281, still within the recent range of $1.14 to $1.11.
The dollar was a touch lower against the euro and yuan to start the week in Europe, after slightly better-than-expected economic data out of China eased concerns a little over the global economic slowdown.

Oil prices rose slightly on Monday as Chinese industrial output and retail data topped expectations but gains were capped by overall figures showing the country's slowest quarterly economic growth in decades.
Gold steadied on Monday after data showed Chinese economic growth slowed to its weakest in about 27 years, while gains in equities curbed appetite for bullion as investors latched onto some positive readings from the world's second-biggest economy.

Date	Time	Currency	Event	Actual	Forecast	Previous
15/07/2019	12.00	INR	WPI Inflation (YoY) (Jun)	2.02	2.35	2.45

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