Published on 31/10/2019 9:58:42 AM | Source: Geojit Financial Services Ltd

US dollar gained against a basket of currencies after Fed cut its policy rates - Geojit Financial

Posted in Currency Report| #Currency Tips #Geojit Financial Services Ltd

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News Box

* Rupee ended at 70.90 a dollar yesterday, down 6 paise against its previous close of 70.84.

* FBIL set reference rate for dollar at 70.7303 and euro at 78.4418.

* Today India to release Sept. eight core industries output data and fiscal deficit for AprilSept. period.

* Global Funds Buy Net INR71.9B of India Stocks Wednesday: NSE; Foreigners Buy Net INR11.8b of India Equity Derivatives Wednesday.

* Yield on 6.45% bonds maturing July 2029 at 6.5% on Oct. 30.

* US dollar gained against a basket of currencies after Fed cut its policy rates.

* FOMC in its monetary policy meeting reduced its interest rates for a third time in a row.

* Euro waited more macroeconomic numbers while UK's pound held firm on election news.

* Japan’s yen traded little changed as investors await the Bank of Japan’s policy decision .

* BoJ began its policy meeting yesterday and the outcome is expected today.

* Data released showed China's NBS manufacturing PMI shrank for sixth month while services PMI dipped to multi year low.

* PBOC has set the yuan reference rate at 7.0533 versus the previous fix 7.0582.


Traders' Corner

Ahead of US central bank policy outcome and month end American currency demand from the importers curtailed the Indian unit's upside move to end lower by 6 paise. However more downside was capped led by the foreign fund inflows and rally in domestic equities. After a weak opening, Rupee touched a low of 71.03 a dollar but bounced back to close at 70.90 against its previous close of 70.84. On the previous day, Domestic currency ended higher by 4 paise.

FIIs were buyers in the capital market segment; bought shares worth Rs 7192.42cr on 30 Oct as per exchange's provisional figures. DIIs, on the other end were sellers to the tune of Rs 185.87cr for the corresponding period. Oil prices eased after a report showed bigger than expected inventories build-up. FOMC in its policy meeting yesterday reduced its interest rates as market estimates but indicated a pause in future while BoJ is expected to deliver its decision today. On the domestic front, fiscal deficit and eight core industries are due to release.

For USDINR pair, 71 and 71.21 will be the major levels on the upside. Conversely if 70.62 level breaks, then 70.44 level will be in play.


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