FX Monitor - April 24, 2020 - Geojit

- Indian currency ended at 76.06 yesterday, up 62 paise against its previous close of 76.68.
- FBIL set the reference rate for USDINR at 76.8084 and Euro at 83.3832.
- US dollar continued to gain; stood near two and a half high against a basket of currencies.
- In economic news, US flash manufacturing PMI for Apr slumped the most in 11 years.
- Euro was steady on uncertainty over European Union's emergency fund while UK's pound to take cues from economic data.
- Led by Covid-19 concerns, UK's services PMI fell to an all-time low.
- Japan's yen waited BoJ's decision on scrapping its government bond purchase.
- PBOC has set the Yuan reference rate at 7.0803 versus Thursday's fix at 7.0887.
- China' central bank reduced its targeted 1-year MLF rate by 20 bps; injected 56.1 billion yuan.

Outlook - USDINR

Hopes of another round of stimulus package from the government revived the positive sentiments, which helped the currency to end the session at a two-week high. Also, the RBI's pledge to support the economy aided the Indian Rupee. Local unit today opened at 76.31 a dollar and touched a high of 76, before settling the day at 76.06; its highest closing level since April 07. On Wednesday, Rupee appreciated by 15 paise.

FIIs continued to be sellers in the capital market segment; sold shares worth Rs 114.58cr on 23 Apr as per the exchange's provisional figures. DIIs, on the other end were buyers to the tune of Rs 338.27cr for the same period. Oil prices extended their positivity on the back of Middle East tensions despite glut concerns. In other news, Finance Minister of India is scheduled to meet the PM of the country tomorrow to discuss about next round of stimulus package.

For USDINR, 76.29 and 76.54 may act as a crucial level in the upside while 75.84 and 75.59 will act as major support levels.

Source : Equity Bulls

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