USD/INR ends down on likely FII inflows into the local stocks

The rupee settled at 70.4350 against 70.51 at the previous close. The local unit moved in 70.30 -70.51 per dollar band intra-day.
USD/INR ends down on likely FII inflows into the local stocks. Dollar/rupee dropped both in onshore and offshore markets in early aftenoon trades on Tuesday as a rebound in local shares reduced fears of FII outflows. Traders said short-covering after nine straight days of fall has led to the rebound in equities. Major stock indices Nifty and Sensex that were down more than 0.5% in the moring are now trading more than 1% higher.

Foreign exchange markets are correcting some of Monday’s sharp movements in early trade in Europe on Tuesday, slowly absorbing the shock of the trade war escalation between the U.S. and China. The index had hit a three-week low of 96.822 as investors fled the U.S. equity market in search of safe havens and raised their bets on the Federal Reserve cutting interest rates this year.
The euro has been resilient despite the latest bout of trade tensions and it's probably down to people who were short euros vs emerging market currencies and are now buying euro back and unwinding euro hedges. Investor focus on Tuesday was also on euro zone industrial production for March and Germany's ZEW economic sentiment index for May.

Gold retreated slightly from a one-month high on Tuesday as equity markets enjoyed some respite after the United States and China adopted a more optimistic tone on their trade dispute. U.S. gold futures GCv1 were down 0.3% at $1,298.40.
Oil prices rose on Tuesday after the world's top oil exporter Saudi Arabia said explosive-laden drones had attacked two pumping stations belonging to state oil company Aramco.

Date	Time	Currency	Event	Actual	Forecast	Previous
14/05/2019	14.00	GBP	Average Earnings Index +Bonus (Mar)	3.2%	3.4%	3.5%
14/05/2019	14.00	GBP	Claimant Count Change (Apr)	24.7K	24.2K	22.6K
14/05/2019	14.00	EUR	German ZEW Economic Sentiment (May)	-2.1	5.1	3.1

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