Rupee opened higher, Dollar steady vs. Yen

Wednesday,   20-Jun-2018   09:03 AM (IST)

The Indian rupee opened the day higher at 68.10/11 levels compared to its previous close at 68.38/39 levels as rebound in Chinese Yuan and Asian equities buoys rupee. Indian government bonds jump, with 10-year benchmark bond hitting three-week high as RBI to buy up to INR100 billion bonds via so-called open market operation tomorrow. The equity markets opened higher today taking cues from their Asian peers amid ongoing trade war tensions between the US-China. As per the technical indicators range for the USDINR pair may be 67.90-68.45 levels. Rupee has an immediate support at 68.25 levels. A breach of the same may see rupee at 68.40 followed by 68.56 levels. On the positive side rupee is likely to face resistance at 68.04 levels and if it is able to break the same then it may gain up to 67.90 levels followed by 67.78 levels.

The dollar steadied against the yen on Wednesday, as U.S. yields pulled back from lows hit on concerns about a worsening trade feud between Washington and Beijing, although persistent worries about the trade rift are likely to cap any greenback recovery. The dollar was little changed at 110.08 yen following its retreat to an eight-day trough of 109.55 on Tuesday after U.S. President Donald Trump threatened to slap more tariffs on China, prompting an angry response from Beijing. Escalating tensions triggered risk aversion and caused a sell-off in global equities. The yen is often sought in times of political tension and market turmoil. The dollar managed to bounce back against the yen as a degree of calm returned to broader markets and Wall Street shares pared a bulk of their losses, while safe-haven U.S. Treasury yields climbed from three-week lows. Better-than-expected U.S. housing data also nudged Treasury yields off their lows on Tuesday. The euro was down 0.05 percent at $1.1584, shaky after slipping to a two-week low of $1.1528 overnight after European Central Bank President Mario Draghi called for a patient approach to European monetary policy at a forum in Portugal.