Rupee off intraday high, EURUSD lower

Wednesday,   17-Jan-2018   12:30 PM (IST)

The Indian rupee is trading off intraday high at 63.95/96 level (12:15 pm) in the afternoon deals. Rupee opened at 64.0750/0850 levels but rose to 63.7775/7875 levels in early session, as New Delhi unexpectedly reduced additional borrowing requirement for this fiscal year by more than half. However, dollar purchases by state-run banks, likely on behalf of the central bank, limited further gains in the local unit. Most Asian currencies are trading flat to higher against the greenback. Sensex is trading range-bound and Nifty is holding 10,700 ahead of GST meet. As per the technical indicators range for the USDINR pair for the remaining part of the day may be 63.65-64.15 levels. Rupee has an immediate support at 64.10 levels. A breach of the same may see rupee at 64.24 followed by 63.40 and 64.56 levels. On the positive side rupee is likely to face resistance at 63.80 levels and if it is able to break the same then it may gain up to 63.64 levels followed by 63.50 and 63.37 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.25%, 4.36% and 4.43% respectively.

The EUR/USD pair is seen extending its corrective slide from three-year tops of 1.2323, now heading for a test of the 1.2200 support, as broad-based US dollar rebound gains traction in early Europe. The spot returned to the red zone, as markets resorted to repositioning ahead of the key Euro zone final CPI data while the German political headwinds, after the SPD rejected the coalition talks with Merkel’s Conservatives, also continue to undermine the sentiment around the EUR. Meanwhile, the pair also weighs the latest ECB headline, citing that the ECB is unlikely to drop the pledge to QE program until inflation hits the target next week. Markets now look forward to the Euro zone final CPI and US industrial figures due later on Wednesday for fresh trading impetus.