The rupee settled at 69.26 against 69.2550 at the previous close. The local unit moved in 69.18-69.4450 per dollar band intra-day.
USD/INR ends up on FII outflows from local stocks after RBI slashed growth outlook in its June policy after the Reserve Bank of India cut repo rate by 25 basis points and changed its policy stance to “accommodative” from “neutral. Foreign banks sold dollars likely on behalf of foreign investors who are injecting funds into local debt market after the RBI policy, dealers said.Foreign banks or on selling mode. FPI flows are there in local debt market after RBI cut rates and changed policy stance to accomodative.
Global Currency
Japan's yen approached a five-month high on Thursday after a lack of progress in U.S.-Mexico trade talks hurt risk sentiment and drove investors towards safe-haven currencies. Investors were focused on the euro, which has strengthened recently on the back of dollar weakness caused by rising bets on a U.S. interest rate cut.
The euro rose on Thursday as investors prepared to scrutinise a European Central Bank meeting, wanting to know how concerned its policymakers are about signs of a downturn in growth. The euro has strengthened recently on the back of dollar weakness caused by rising bets on a U.S. interest rate cut. The single currency was 0.2% higher at $1.1239 EUR=EBS after brushing a 1-1/2-month high of $1.1307 earlier this week.
Global Markets
Oil prices rose on Thursday after falling to near five-month lows in the previous session, but sentiment stayed weak due to rising U.S. supply and a stalling global economy. U.S. West Texas Intermediate crude futures CLc1 fetched $51.86, up 18 cents or 0.35%.
Gold prices rose on Thursday, drawing closer to their highest levels this year on increased expectations of a U.S. rate cut, even as some investors locked in profits from bullion's recent rally.
