Currency Market Updates:1 Jul

Globally, noted immunologist Anthony Fauci warned against the possibility of 100k daily covid cases in US. US equity markets continue to rally largely detached of underlying conditions. EUR/USD pair is trading flat near 1.1220 levels. The pair will take further cues from manufacturing PMI data of US and Europe.

On domestic front, India witnessed marginal current account surplus of $0.6 Bn in Jan-Mar-20. Current account surplus can be attributed to narrowing trade deficit (due to lower crude and slowing economy), higher service and private receipts. On FY basis, Current account deficit narrowed to 0.9% of GDP in FY 20 against 2.1% of GDP in FY19. USDINR pair is trading flat near 75.55. USDINR pair has immediate support near 75.35-40 levels and immediate resistance at 75.80-85 levels.