USD/INR ends at 1-mo high on strong dlr, likely FII outflows from local stocks

The rupee settled at 69.05 against 68.78 at the previous close. The local unit moved in 69.01-69.20 per dollar band intra-day.
Dollar/rupee ended at one-month high Thursday tracking a strong greenback, which surged to a two-year high after the Federal Reserve Chairman Jerome Powell dashed hopes of aggressive rate cut this year, while likely overseas outflows from local stocks further aided dollar demand. Foreign banks were on the buy-side in the spot today. Dollar turned significantly strong after Fed Powell ripped hopes of aggressive Fed arte cut this year. Also, FIIs pulled out of local equities.

Gains in the dollar after the Federal Reserve sounded cautious on more rate cuts sent the euro to a 26-month low on Thursday, as investors decided a lengthy U.S. easing cycle was unlikely. In a widely expected move, the U.S. central bank cut rates on Wednesday for the first time since the financial crisis, in response to the growing risk of higher import tariffs and a slowdown in the world's major economies.
The increasing likelihood of a 'no-deal' Brexit and lack of progress in recent U.S.-China trade talks highlight that the outlook for the euro zone economy could yet be hit by more negative shocks heading into year end.

Oil dropped below $65 a barrel on Thursday, declining for the first time in six days, after the U.S. Federal Reserve dampened hopes for a string of interest rate cuts and as rising U.S. output helped keep the market well supplied.
Gold prices dropped to two-week lows on Thursday after the U.S. Federal Reserve cut rates by 25 basis points as expected but tampered market expectations of a lengthy easing cycle, lifting the dollar to a two-year high.

Date	Time	Currency	Event	Actual	Forecast	Previous
1/08/2019	13.25	EUR	German Manufacturing PMI (Jul)	43.2	43.1	43.1
1/08/2019	16.30	GBP	BoE Interest Rate Decision (Aug)	0.75%	0.75%	0.75%

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