Currency Market Updates: 8-Jul

Globally, the Reserve bank of Australia kept monetary policy stance unchanged with interest rate at 0.25%. Besides other FED members, Quarles also raised the concerns over economic recovery amid rising COVID-19 cases in US. On the other hand, EUR/USD pair is trading flat near 1.1275 levels after the release of German industrial production, which grew by 7.8% on a weaker base.

On the domestic front, Equity markets are holding well with nifty near 10800 levels despite the mild correction in US markets. In last two days, One of large corporate paid USDINR forward premium across the tenure leading June premium spiking to 292 levels. USDINR pair has shown an early sign of recovery with pair rebounding to 74.94 from 74.67 levels. Overall, USDINR pair has support near 74.65-70 levels and resistance near 75.10-15 levels