Wednesday 24 June 2020

Currency Market Update: 24 June


Globally, manufacturing and service PMIs, although below 50, but beat the expectation in Europe and UK. EU’s manufacturing PMI released at 46.9 against expectation of 43.8 and service PMI released at 47.3 against expectation of just 40.5. Consequently, EUR/USD pair first spiked to 1.1350, before settling near 1.1320 levels. On the other hand, Boris Johnson announced that UK will withdraw lock down measures in July, to support economic activity.

On the domestic front, Indian and Chinese armies announced the disengagement at LAC border, leading to rally in rupee and equity markets. Nifty index is trading in green near 10,550 levels, multi month high. Partially convertible rupee gained nearly 30 paisa against US counterpart. The weakness in USDINR pair is further supported by a decline in the US dollar index, which fell to 96.6 levels. USDINR pair has near support at 75.45-50 levels and resistance at 75.75-80 levels.

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