The Indian rupee ended slightly lower on Monday as sentiment remained cautious on concerns foreign investors would pare some of their domestic equity or debt holdings, but easing global geopolitical tensions limited the fall.
Emerging market currencies however strengthened on Monday after recent sell-offs as markets saw a lowered risk of direct conflict between Russia and Ukraine while Middle East tensions appeared less acute.
Still, analysts said global events will continue to determine the outlook for the rupee.
Foreign investors have so far net sold almost $800 million in debt and a net $65.83 in shares, after their strong inflows had boosted the rupee and domestic shares earlier this year.
On the domestic front, investors will watch for India's July consumer price index, due on Tuesday, which is expected to rise marginally to 7.40 per cent from 7.31 per cent in June, as per a Reuters poll.
Further, factory output in June likely rose 5.4 per cent from a year earlier, faster than the 4.7 per cent growth in May, according to a poll of 27