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

The Indian rupee little changed at 71.19 pair now at 71.08 against 71.3175 previous close.
Pair to tip in 70.90-71.25 range today.
Dollar/rupee opened up Friday on overseas inflows into local debt on hopes of a rate cut by the Reserve Bank of India in its upcoming monetary policy review. Also, a weak greenback after major central banks refrained from following Federal Reserve in cutting rates further weighed on spot pair. Dollar is weak and there are some FPI inflows weighing on spot. Local government debt prices opened higher on hope of rate cut by the Reserve Bank of India in October policy amid easing fiscal concern.

The dollar nursed losses against most major currencies on Friday, as central banks in Switzerland and the UK refrained from following the Federal Reserve in cutting rates, while risk appetite ebbed on caution about U.S-China trade talks. Investors are also focused on U.S.-China trade talks in Washington, aimed at laying the groundwork for high-level discussions next month.
Sterling GBP hit a two-month high of $1.2560 against the greenback overnight after European Commission President Jean Claude Juncker said he thought Brussels could reach a deal with Britain to leave the European Union. Swiss National Bank, the Bank of England and the Bank of Japan all kept their policies on hold on Thursday. Their currencies rose and mostly held gains in Asian trade.

Oil prices were on track for a more-than-7% jump this week, their biggest in months, as early trading on Friday saw gains extended on fresh tensions in the Middle East after a key Saudi Arabian supply hub was knocked out in an attack last weekend.
Gold settled down Thursday but stayed above the key $1,500. Longs were pricing in the strength delivered to the yellow metal by the latest U.S rate cut while remaining unsure of the next Federal.

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