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

The rupee settled at 68.54 against 68.6575 at the previous close. The local unit moved in 68.5375-68.8350 per dollar band intra-day.
Dollar/rupee ended down Tuesday on selling by foreign banks amid likely overseas inflows into local stocks. There were some FII inflows into local equities and foreign banks likely sold dollars on their behalf. Dollar/rupee ended at Rs 68.55/$1 Tuesday compared to previous close of Rs 68.65/$1.Local stocks ended flat on short covering at lower levels after making steep losses. Indices were over 0.50% down during the day. The 50-share Nifty ended 0.02% down at 11,555.90 on the National Stock Exchange.

The dollar index, which tracks the greenback against a basket of developed-market currencies, hit their highest in nearly three weeks thanks largely to the weakness in sterling. At 3:45 ET, they were at 97.082, up 0.1% from late Monday.
The British pound fell towards its lowest levels in more than two years on Tuesday against the backdrop of a worsening economic outlook and rising fears about a no-deal Brexit and a new Prime Minister. With a key $1.25 level against the dollar giving way in early Asian trade, traders quickly pushed the British currency down half a percent against the dollar to a level not seen since April 2017, barring a flash crash in early January.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although the potential for conflicts in the Middle East offered support to prices.
Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, settled Monday’s trade down just a dime at $1,400. Spot gold, reflective of trades in bullion, traded at $1,397.67 per ounce.

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