Tuesday, 28 July 2020
- Dollar in the doldrums as focus turns to Fed, U.S. fiscal package
- Asian stocks up as US fiscal package gives hopes
- Oil prices rise on U.S. stimulus hopes, weaker U.S. dollar
Major Currency Rates at 8 AM
The dollar nursed losses on Tuesday, after slumping to a two-year low, as investors worry about the damage from the coronavirus to the U.S. economy and await the latest outlook from the Federal Reserve and the passage of a new fiscal rescue package.
The U.S. currency’s drop has put a rocket under gold prices and has the yen standing near its highest in four months, the euro just below a 22-month high and the kiwi close to its strongest since January. While the moves were modest, they kept pressure on the greenback ahead of the two-day Federal Reserve meeting that gets underway later Tuesday as speculation mounts about a possible shift in policy emphasis – even if no policy change is expected.
USD / INR Technical Analysis
The rupee is likely to open around 74.80. Last Week it touched 74.50 where the central Bank was seen buying dollars.
The Rupee is likely to have strong resistance at 74.95 (14 Day Moving Average) and 75.53 (100 days moving average) and support at 74.50 (double bottom) and 74.36 (Bollinger Band)
Asian markets are higher today as Chinese and Hong Kong shares show gains. The Shanghai Composite is up 0.77% while the Hang Seng is up 0.80%. The Nikkei 225 is not trading.
Oil prices rose for a third straight day on Tuesday, buoyed by support for demand coming from efforts to stimulate the U.S. economy’s recovery from the coronavirus crisis and a weakening of the dollar that makes crude cheaper for global buyers.
Brent crude futures climbed 35 cents, or 0.8%, to $43.76 a barrel adding to a 0.2% gain on Monday.U.S. West Texas Intermediate (WTI) crude futures gained 27 cents, or 0.7%, to $41.87 a barrel, building on a 0.75% rise on Monday.
Source : Reuters