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

The rupee settled at 70.69 against 70.8850 at the previous close. The local unit moved in 70.55-70.9475 per dollar band intra-day.
USD/INR ends down on likely FII inflows into local stocks. Weak German industrial output data led Euro down. It is compounding fear that Europe's largest economy could be heading for its first recession in more than six years. The euro traded at $1.1195 compared to $1.1201 at close of previous session. Euro and Pound remained steady against the US dollar as investors remain on sidelines awaiting further developments related to US-China trade war and Brexit.

The dollar edged lower across the board on Thursday, as risk sentiment stabilised after resilient Chinese trade data and Beijing's efforts to slow a slide in the value of the renminbi encouraged investors to buy riskier currencies.
Market expectations for more than a quarter point rate cut from the U.S. Federal Reserve in September is still firmly baked into bond markets, despite an overnight bounce in global markets. Those expectations forced the dollar to weaken also against the euro and the yen. The yen JPY= was a tad firmer at 106.185 per dollar. It touched 105.500 yen overnight, its strongest level since Jan. 3, before pulling back slightly.

Gold held steady on Thursday, hovering near the key psychological level of $1,500, supported by uncertainties around Sino-U.S. trade war and a slew of interest rate cuts by global central banks amid fears of an economic slowdown.
Oil jumped more than $1 a barrel on Thursday due to expectations that falling prices may lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by an escalation of U.S.-China trade tensions.

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