FX Monitor - April 17, 2020 - Geojit

- Indian currency ended at 76.87 yesterday, down 43 paise against its previous close of 76.44.
- FBIL set the reference rate for USDINR at 76.2743 and Euro at 83.6012.
- RBI to release its weekly FX reserves data later in the day.
- US dollar edged higher against a basket of currencies to one-week high following weekly employment figures.
- In economic news, US weekly jobless claims declined week on week but remained above expectations.
- Euro traded near 6-day low while UK's pound extended its downside.
- PBOC has set the Yuan reference rate at 7.0718 versus Thursday's fix at 7.0714.
- On the data front, China is due to release its first quarter GDP numbers today.

Outlook - USDINR

Despite hopes of the ruling government coming out with new revival package, the domestic currency continued its weakness against American dollar as the latter edged higher led by the safe haven demand and weak economic data. Foreign fund outflows also weighted in the currency. Local unit yesterday opened lower at 76.75 a dollar and moved in a range of 76.68 and 76.87 before settling at its all time low of 76.87. Rupee ruptured its last week's low of 76.55. On Wednesday, Rupee depreciated by 17 paise.

FIIs were sellers in the capital market segment; sold shares worth Rs 2920.36cr on 16 Apr as per exchange's provisional figures. DIIs, on the other end were buyers to the tune of Rs 1321.44cr for the same period. Oil prices reversed some of its gains after OPEC in its monthly report suggested oil demand to dip to 30-year low led by coronavirus spread.

For USDINR, 77 may act as a crucial level in the upside while 76.61 and 76.38 will act as major support levels.

Source : Equity Bulls

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