Rupee opened lower, Euro slips vs. Dollar
Monday,
25-Sep-2017
09:09 AM (IST)
The Indian rupee opened the day lower at 64.84/85 levels compared to its previous close at 64.79/80 levels tracking losses in euro after German elections. The benchmark indices opened lower today on account of derivatives expiry due on Thursday and the recent spike in tensions on the Korean peninsula. Indian government bonds rise on value buying after benchmark yield rose for three consecutive weeks. As per the technical indicators range for the USDINR pair may be 64.65-65.15 levels. Rupee has an immediate support at 64.94 levels. A breach of the same may see rupee at 65.05 followed by 65.23 levels. On the positive side rupee is likely to face resistance at 64.71 levels and if it is able to break the same then it may gain up to 64.64 levels followed by 64.52 levels.
The euro slipped in early Asian trading on Monday after Germany’s election showed surging support for a far-right party that left Chancellor Angela Merkel scrambling to form a governing coalition. Merkel did win a fourth term in office on Sunday but will have to build an uneasy coalition to form a government after her conservatives haemorrhaged support in the face of a surge by the anti-immigration Alternative for Germany (AfD). Despite winning the most votes, Merkel’s bloc slumped to its worst result since 1949 and her current Social Democrat coalition partners said they would go into opposition after tumbling to 20.7 percent in projections, a post-war low. Political uncertainty also took a toll on the New Zealand dollar after no single party won a majority in an election over the weekend. The ruling National Party won the largest number votes in the election, but neither of the major parties won enough seats to gain a majority in parliament, forcing a round of coalition building that could last days or weeks. Sterling was steady for the moment at $1.3527 after falling on Friday when ratings agency Moody's downgraded Britain's credit rating, saying government plans to bring down debt had been knocked off course and Brexit would weigh on the economy. A few hours after Prime Minister Theresa May set out plans for new ties with the European Union, Moody’s cut the rating to Aa2, underscoring the economic risks that leaving the bloc poses for the world’s fifth-biggest economy. May failed to give any concrete details for how Britain might retain preferential access to Europe’s single market in her speech.
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