FX Monitor - May 27, 2020 - Geojit

- May month Currency F&O expiry is due today.
- Indian Rupee ended at 75.66 yesterday, up 29 paise against its previous close of 75.95.
- FBIL set the reference rate for USDINR at 75.7868 and Euro at 82.8183.
- US dollar edged lower against a basket of currencies as the investors took eyes off safe haven assets.
- US central bank is set to release its Beige book today.
- Euro rose on economic data while UK's pound got boost on news of gradual reopening of economy.
- ECB president Lagarde's speech is due in the later part of the day.

USDINR Outlook

Tracking the weakness in the American currency overseas, the Indian unit reversed its previous day downtrend to close higher by 29 paise. However, spike in the coronavirus cases in the country weighted in the currency. Rupee yesterday opened at 75.69 a dollar and made an intraday high and low of 75.62 and 75.74 respectively before settling the day at 75.66 against Friday's closing of 75.95. On Monday, Indian markets were shut owing to Id-Ul-Fitr.

FIIs were buyers in the capital market segment yesterday; bought shares worth Rs 4716.13cr as per exchange's provisional figures. DIIs, on the other side were also buyers to the tune of Rs 2841.09cr for the same period. Oil prices to take cues from the hopes of supply cuts and economic recovery. Along with coronavirus developments, major speeches and economic data will be in limelight this week.

For USDINR, 75.81 and 76.05 may act as a crucial level in the upside while 75.48 and 75.27 will act as major support levels.

Source : Equity Bulls

Keywords