Forex Monitor - April 30, 2020 - Geojit

- Indian markets to remain shut tomorrow on account of Maharashtra Day.
- Indian currency ended at 75.66 yesterday, up 52 paise against its previous close of 76.18.
- FBIL set the reference rate for USDINR at 76.3710 and Euro at 82.5927.
- In economic news, eight core industries data for Mar is scheduled today.
- US dollar edged lower against a basket of currencies after Fed's monetary policy decision.
- FOMC in its April meeting kept the interest rates unchanged.
- On the data front, US Q1 advance GDP contracted while initial and continuing jobless are due later in the day.
- Euro rose while UK's pound to take cues from Brexit related hedging flows.
- ECB to announce its policy meeting decision today.
- PBOC has set the Yuan reference rate at 7.0571 versus Wednesday's fix at 7.0704.

Outlook - USDINR

Indian rupee continued its uptrend for a straight third day tracking the gains in the domestic equity markets and weak USD. Capital fund inflows also supported the currency. Local unit yesterday opened at 75.94 a dollar and moved in a range of 75.60 and 75.96 before settling the day at 75.66 against its previous close of 76.18. On the previous day Rupee was up by 7 paise. FIIs turned to buyers in the capital market segment; bought shares worth Rs 722.08cr on 29 Apr as per exchange's provisional figures. DIIs, on the other end were also buyers to the tune of Rs 78.67cr. Oil prices extended its uptrend as inventories rose less than expected. Yesterday US central bank announced its policy decision where Fed maintained its status quo and hinted to use "all possible tools to support the economy". Now ECB is set to meet for its interest rate decision meeting. On domestic front, macroeconomic data to start to remain in focus.

For USDINR, 75.89 and 76.15 may act as a crucial level in the upside while 75.36 and 74.96 will act as major support levels.

Source : Equity Bulls

Keywords