Rupee gains, EURUSD in range
Friday,
18-Aug-2017
12:20 PM (IST)
The Indian rupee gains and is currently trading at 64.09/10 levels (12:15 pm) in the afternoon deals after touching the high of 64.0825/0925 levels as greenback sales by foreign banks offset adverse impact from concerns about U.S. President Donald Trump-led administration's ability to push forward reforms and a likely terrorist attack in Barcelona. Oil and other importers’ dollar demand may weigh on rupee. Sensex falls 269 pts, Nifty below 9,850 as index heavyweight Infosys cracked after Vishal Sikka resigned as MD and CEO. As per the technical indicators range for the USDINR pair for the remaining part of the day may be 63.95-64.25 levels. Rupee has an immediate support at 64.15 levels. A breach of the same may see rupee at 64.22 followed by 64.30 and 64.39 levels. On the positive side rupee is likely to face resistance at 64.07 levels and if it is able to break the same then it may gain up to 63.97 levels followed by 63.91 and 63.85 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.43%, 4.40% and 4.35% respectively.
The single currency is up smalls vs. its American peer at the end of the week, with EUR/USD navigating a narrow range in the 1.1730 region. Spot is extending its choppy trade so far this week and is now coming up from yesterday’s 3-week lows in the vicinity of 1.1660 amidst some renewed weakness around the greenback. Same story around the buck this week, with gains clearly capped by the 94.00 area and always with the focus of attention on US politics and Trump’s tweets. The demand for the shared currency seems to have come to a ‘wait-and-see’ mode, as market participants appear disappointed on recent news that President Draghi will not make any (long waited) announcements at the upcoming Jackson Hole Symposium. In addition, the ECB minutes published on Thursday note some concerns among Council members about the exchange rate. In the data space today, EMU’s current account figures are due later in the European morning, while the Reuters/Michigan index is only expected across the pond.
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