FX Monitor - June 3, 2020 - Geojit

- Indian Rupee ended at 75.36 yesterday, up 18 paise against its previous close of 75.54.
- FBIL set the reference rate for USDINR at 75.4792 and Euro at 84.0904.
- In economic news, domestic services & composite for May are due today.
- US dollar fell as investors shifted out of safe haven assets.
- On the data front, US services and composite are scheduled to be released.
- Euro waited ECB meeting while UK's pound rose over Brexit developments.
- ECB will meet for its interest rate decision meeting on Thursday.
- On Wednesday, the PBOC set the Yuan midpoint rate at 7.1074 vs. Monday's 7.1167.

USDINR Outlook

Ruling government's assurance that economy will retain its growth aided the Indian currency that reversed its opening losses to close the session higher by 18 paise. Positive domestic equity markets and fund inflows also supported the Indian rupee. Local unit yesterday opened at 75.57 a dollar and ended the day at 75.36 against its previous close of 75.54. During the day, currency moved in a range of 75.62 and 75.36. On Monday, Rupee appreciated by 8 paise.

FIIs were buyers in the capital market segment; bought shares worth Rs 7498.29cr on 02 June as per exchange's provisional figures. Oil prices edged higher ahead of OPEC meeting and easing lockdowns in more economies. DIIs, on the other end were also buyers to the tune of Rs 441.05cr for the same period. Now the major will fall on central banks' around the globe, where ECB will be in the first one to meet for its monetary policy meeting.

Source : Equity Bulls

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