Risk boost from US-EU trade deal of little help to rupee as outflows persist
The 1-month non-deliverable forward indicated the rupee will open in the 86.48-86.51 range versus the U.S. dollar, compared with Friday's close of 86.5150.
Global stocks rose and the euro firmed after the weekend deal between the EU and the U.S., which set the import tariff on most EU goods at 15% - half the rate initially threatened.
Asian currencies traded mixed, while the dollar index was at 97.6.
The U.S.-EU trade pact is expected to reduce trade-related uncertainty in a week dominated by central bank policy decisions and the U.S.'s August 1 deadline for trading partners to strike deals.
Washington has already signed similar framework accords with Britain, Japan, Indonesia and Vietnam.
Meanwhile, India's trade minister told Reuters last week that the country is also hopeful of reaching a deal with the U.S. that includes "special and preferred treatment".
Alongside these, monetary policy meetings in the U.S., Japan and other economies will be in focus this week.
While the Federal Reserve is widely expected to keep rates unchanged, ANZ said it will watch for "tweaks to the language" in the Fed's statement and Chair Jerome Powell's comments for clues on possible rate cuts in September.
Over the week, traders expect the rupee to hover between 86.20 and 86.80-86.90, with a slight depreciation bias given the persistent outflows from local stocks.
Foreign investors have net sold Indian equities worth about $750 million so far in July, reversing three months of inflows.
** One-month non-deliverable rupee forward at 86.63; onshore one-month forward premium at 13.25 paise
** Brent crude futures up 0.4% at $68.7 per barrel
** Ten-year U.S. note yield at 4.39%
** As per NSDL data, foreign investors sold a net $231.1mln worth of Indian shares on July 24
** NSDL data shows foreign investors sold a net $55.2mln worth of Indian bonds on July 24
(Reporting by Jaspreet Kalra; Editing by Sumana Nandy)
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