- Indian currency ended at 75.91 yesterday, down 33 paise against its previous close of 75.58. - FBIL set the reference rate for USDINR at 75.5634 and Euro at 81.6548. - US dollar fell ahead of Fed Chairman's testimony and rise in commodity currencies. - US Fed Chair's testimony is scheduled later today while a speech is due on Thursday. - FOMC is set to release its minutes from recent meeting on Wednesday. - Euro edged higher on proposal of EU fund while UK's pound to focus on Brexit and BoE's move. - Japan's yen to take cues from IIP figures (Mar) today. - PBOC will give an update on its loan prime rate on Wednesday.
Indian currency continued its weakness for a third day tracking the weakness in the domestic equity markets and sustained capital outflows. Spike in oil prices along with strengthening American currency also weighted in the Rupee. Local unit on the first day of trading week opened lower at 75.85 a dollar and fell by 33 paise to settle the day at 75.91. On Friday, Rupee ended lower by 2 paise at 75.58.
Concerns over economic outlook after the government extended the lockdown till the end of the current month kept the Indian equity markets kept on their toes. FIIs continued to be sellers in the capital market segment; sold shares worth Rs 2512.82cr on 18 May as per exchange's provisional figures. DIIs, on the other end were sellers to the tune of Rs 152.42cr for the same period. Oil prices got an lift from the hopes of coronavirus vaccine and a written testimony released by Fed before video conference today, where the US central bank head said to use "full range of tools" to support the economy.
For USDINR, 76.22 and 76.44 may act as a crucial level in the upside while 75.76 and 75.51 will act as major support levels.