Rupee higher, EURUSD down

Wednesday,   20-Jun-2018   12:18 PM (IST)

The Indian rupee is trading higher at 68.08/09 levels (12:15 pm) in the afternoon deals after touching the high of 68.04/05 levels as a rebound in regional and local shares eased concerns about foreign fund outflows. So far rupee traded in the range of 68.04-68.1725 levels. Equity markets are trading higher today despite mixed cues from their Asian peers amid ongoing trade war tensions between the US-China. Sensex trades above 35,460 and Nifty at 10759. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 67.85-68.35 levels. Rupee has an immediate support at 68.16 levels. A breach of the same may see rupee falling to 68.23 followed by 68.29 and 68.35 levels. On the positive side, rupee is likely to face resistance at 68.02 levels and if it is able to break the same then it may gain up to 67.97 levels followed by 67.89 and 67.81 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.21%, 4.15% and 4.23% respectively.

The Euro is trading down at around 1.1575 against the US Dollar as no major macro news are set to influence the currency pair ahead of the ECB central bankers’ symposium in Sintra, Portugal that features world’s top governors in a panel discussion later on Wednesday. Improved risk appetite offered a sigh of relief across the forex board in Asia this Wednesday, as markets shrugged-off the renewed tensions over the US-China trade spat. However, most majors held onto tight trading ranges, as markets took a breather ahead of the key panel discussion at the European Central Bank (ECB) Sintra Forum. Amongst the Asia-pac currencies, the USD/JPY pair managed to take on the recovery above the 110 handle, but lacked further upside momentum amid subdued US dollar and flattening US yield curve. The Antipodeans also staged a minor comeback, with the Aussie extending its bounce from 2018 lows. The Kiwi is back above the 0.69 upside barrier, having ignored downbeat New Zealand’s current account data. Looking at the related markets, the Asian equities attempted a tepid bounce, but the sentiment was roiled by losses in China stocks.