* Indian Rupee ended at 75.54 yesterday, up 8 paise against its previous close of 75.62.
* FBIL set the reference rate for USDINR at 75.6369 and Euro at 83.9146.
* In economic news, India’s manufacturing PMI stood at 30.8 in May against 27.4 in April.
* US dollar slipped as investors turned away from safe haven assets.
* On the data front, US manufacturing PMI recovered to 39.8 in May from 36.1 MoM.
* Euro was steady while UK’s pound edged higher,
* ECB will meet for its interest rate decision meeting on Thursday.
* Japan’s yen was mostly unchanged as waited more catalyst.
OUTLOOK - USDINR
Despite a weak manufacturing data, the Indian rupee ended over two week high against USD as the latter weakened overseas and fund inflows. The government decision to re-open the economy after a lockdown and positive domestic equity also aided the uptrend. Local unit today opened at 75.35 a dollar and hit an intraday high of 75.29 before settling the day at 75.54 against Friday’s closing of 75.62. On the previous day, Rupee appreciated by 14 paise.
FIIs were buyers in the capital markets segment; bought shares worth Rs 1575.46cr on 01 June as per exchange’s provisional figures. DIIs, on the other end were sellers to the tune of Rs 459.25cr for the same period. Led by coronavirus led closedown, the domestic manufacturing PMI contracted for a second month in May. Oil prices to take cues from the news of price hike in Saudi Arabia in July and from the OPEC meeting this Thursday. Now the focus will fall on central banks’ around the globe, where ECB will be in the first one to meet for its monetary policy meeting this week.
For USDINR, 75.71 and 75.98 may act as a crucial level in the upside while 75.29 and 75.05 will act as major support levels.
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