U.S. July PPI MoM 0.00% vs 0.20% expected; June revised from -0.30% to -0.10%.

Federal Reserve's Hammack said inflation is broad-based and not confined to a few sectors.

The Indian rupee traded under pressure versus the dollar on Thursday despite declines in both the dollar and oil. After US July CPI slowed, markets eased near-term Fed rate-hike fears and the dollar softened. Brown Brothers Harriman analysts said the US inflation print prompted a mild dovish shift in rate expectations, cutting fed funds futures’ September hike probability from about 50% to 35%. Currencies of oil-import-dependent economies such as India typically underperform when oil prices are elevated.