- Rupee closed at 75.51 yesterday, up 22 paise against it's previous close of 75.73. - FBIL set reference rate for dollar at 75.6838 and euro at 82.0549. - Industrial production (Mar) fell 16.7% from a seven month high in February. - US dollar edged lower as the investors turned focus towards US FOMC chair's speech. - On the data front, US inflation for April fell 0.8%, it's biggest decline since December 2008. - US Fed Chairman Powell is scheduled to speak on economic issue today. - Euro rose while UK's pound declined on a senior Bank of England policy maker.
Hopes of more stimulus measures by the government in the wake of recent coronavirus and weakening of American currency overseas supported the Indian currency that rebounded to close higher by 22 paise. Recovery in the domestic markets and likelihood of RBI intervention also aided the Rupee. The local unit yesterday opened at 75.89 a dollar and moved in a range of 75.49 and 75.95 before ending the session at 75.51 against it's previous close of 75.73.
FIIs turned to sellers in the capital market segment; sold shares worth RS 1662.03cr on 12 May as per exchange's provisional figures. DIIs, on the other end were also sellers to the tune of Rs 364cr for the same period. Prime Minister in his address to the nation said Lockdown 4.0 may come into force along with an stimulus package of Rs 20 lakh crore, which is estimated to be 10% of GDP to support the economy.
For USDINR pair, 75.75 and 76.95 will act as resistance levels while a fall below 75.33 will take to the currency towards 75.12.