USD/INR ends at 1-week low on weak dlr, FII inflows into local assets

The rupee settled at 69.44 against 69.68 at the previous close. The local unit moved in 69.4350-69.6550 per dollar band intra-day.
Dollar/rupee ended at one-week low Thursday tracking a weak greenback after the dovish Fed policy review amid likely FII inflows into both local stocks and debt market. Foreign banks sold dollars mostly on behalf of overseas investor investing in local equities and debts after Fed signalled a possible rate cut later this year. Tracking the same, dollar also weakened weighing further on spot. Dollar/rupee ended at Rs 69.44/$1 Thursday, level last seen on June 12, 2019 compared to previous close of Rs 69.68/$1.

The dollar sank broadly against its rivals on Thursday and is on track for its biggest two-day drop in a year after the U.S. central bank signalled it was ready to cut interest rates as early as next month. The sharp fall in the dollar took currency markets by surprise and forced some hedge funds that had built up large long dollar bets before the rate decision to dump the greenback.
The euro built on overnight gains and advanced 0.6% to 1.1289. The common currency has rebounded from a two-week low of 1.1181 set earlier in the week after European Central Bank President Mario Draghi hinted at a fresh round of stimulus to come. The British pound was up 0.6% at 1.2718 after gaining roughly 0.7% overnight.

Gold prices surged to their highest in more than five years on Thursday after the U.S. Federal Reserve signalled a possible interest rate cut as early as next month, pressuring U.S. Treasury yields and the dollar.
Oil rose by more than 3% to above $63 a barrel on Thursday after Iran shot down a U.S. military drone, raising fears of a military confrontation between Tehran and Washington.

Date	Time	Currency	Event	Actual	Forecast	Previous
20/06/19	14.00	GBP	Retail Sales (MoM) (May)	-0.5%	-0.5%	-0.1%
20/06/19	16.30	GBP	BoE Interest Rate Decision (Jun)	0.75%	0.75%	0.75%

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