Rupee flat after opening tad lower, Dollar lower vs. Yen
Friday,
18-Aug-2017
09:07 AM (IST)
The Indian rupee opened the day tad lower at 64.18/19 levels compared to its previous close at 64.15/16 levels but moves up to 64.12/13 levels in early deals. Rupee is trading flat even as risk sentiment takes a hit after Barcelona attack. Indian government bonds rise tracking overnight fall in U.S. Treasury yields amid increasing demand for safe haven assets. Benchmark indices opened lower with Nifty50 trading below the 9,850 mark as index heavyweight Infosys cracked after Vishal Sikka resigned as MD and CEO. As per the technical indicators range for the USDINR pair may be 64.00-64.35 levels. Rupee has an immediate support at 64.23 levels. A breach of the same may see rupee at 64.33 followed by 64.45 levels. On the positive side rupee is likely to face resistance at 64.05 levels and if it is able to break the same then it may gain up to 63.96 levels followed by 63.88 levels.
The dollar edged lower versus the yen on Friday, hampered by renewed investor concerns over the Trump administration's ability to push forward its economic policy agenda. News of a deadly attack in Barcelona and speculation on Thursday over the possible departure of White House Economic Adviser Gary Cohn rattled markets, sparking a selloff in U.S. equities and stirring demand for safe haven bonds. A White House official said on Thursday that Cohn is remaining in his post. Asian markets are playing catch-up to the moves seen in U.S. markets on Thursday. The dollar fell 0.2 percent to 109.41 yen, adding to its 0.6 percent drop on Thursday. The greenback has pulled away from a peak of 110.95 yen touched earlier in the week, its strongest level in more than a week. The euro had tumbled to a three-week low of $1.1662 on Thursday, after the minutes of the European Central Bank's July 20 policy meeting showed policymakers were worried that the repricing of the currency could overshoot. Even with its losses this week, the euro is still up more than 11 percent so far this year.
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