FX Monitor - April 28, 2020 - Geojit

- April month Currency F&O expiry is due today.
- Indian currency ended at 76.25 yesterday, up 21 paise against its previous close of 76.46.
- FBIL set the reference rate for USDINR at 76.4173 and Euro at 82.2113.
- US dollar edged lower against a basket of currencies as many countries planning to ease lockdown.
- US FOMC is scheduled to begin its two-day policy meeting today.
- Euro rose while UK's pound kept its gain on government lockdown exit measures "in coming days".
- ECB is set to release its policy meeting decision on Thursday.
- BoJ released its policy decision yesterday where maintained its status quo.
- PBOC has set the Yuan reference rate at 7.0710 versus Monday's fix at 7.0703.

Outlook - USDINR

Indian currency reversed its Friday's weakness and closed higher tracking the gains in the capital markets and focus changed towards central banks' meetings beginning this week. A feeble American currency also aided in the domestic unit. Rupee yesterday opened at 76.14 a dollar and touched a high of 76.05 before giving up some of its gains to end the session at 76.25 against its previous close of 76.46. On Friday, Rupee fell by 40 paise.

FIIs remained sellers in the capital market segment; sold shares worth Rs 916.42cr on 27 Apr as per the exchange's provisional figure. DIIs, on the other end were buyers to the tune of 1141.97cr for the same period. Now the focus is shifted towards central bank meetings around the globe which began today with BoJ where the central bank maintained its interest rates and promised to buy unlimited government bonds to support the economy. Fed will begin its two-day meeting today while ECB will release its policy meeting decision on Apr 30. Oil prices tumbled on lower storage capacity and the news that world's largest oil ETF cut its stake. In other news, RBI yesterday announced a Special Liquidity Facility for MF worth Rs 50,000cr.

Source : Equity Bulls

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