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

The rupee settled at 71.66 against 71.81 at the previous close. The local unit moved in 71.5775-72.0375 per dollar band intra-day.
Dollar/rupee's fall on Friday may be limited later in the day on buying by nationalised banks likely on behalf of oil importers. FII inflows are there weighing after the news of the government working on rolling back of FPI tax. However, oil importers' dollar demand may continue to support, checking any sharper slide. PSBs including State Bank of India are on the buy-side. Investors now await the Federal Reserve chair Jerome Powel's scheduled speech at the Jackson Hole Symposium which could provide the markets with further rate cues.

The euro fell to three-week lows on Friday as rising U.S. bond yields boosted the dollar before a speech by the head of the Federal Reserve, which some investors believe will see him signal reluctance to embark on a long rate-cut cycle. Jerome Powell will address the Jackson Hole symposium of central bankers at 1400 GMT, and traders are waiting to see how closely he allies himself with the hawks within the Fed.
The pound gave back some of the gains made on Thursday after German Chancellor Angela Merkel said Britain had time until Oct. 31 to come up with a solution to the Irish border problem. It fell 0.4% to $1.2208 GBP=D3 . Against the euro, it fell 0.2% at 90.58 pence.

Oil prices steadied on Friday, on track for a weekly gain, with attention focused on a speech by U.S. Federal Reserve chief Jerome Powell for news on whether it will cut interest rates for a second time this year to boost the world's largest economy.
Gold edged lower on Friday, heading for its first weekly decline in four, as investors locked in profits from bullion's recent strength as they awaited clarity on U.S. interest rate cuts from the Federal Reserve chairman's speech at Jackson Hole.

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