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Rupee lower, Euro lower vs. Dollar

Friday,   10-Aug-2018   12:26 PM (IST)

The Indian rupee is trading lower at 68.93/94 levels (12:15 pm) in the afternoon deals after touching the low of 69.02/03 levels in line with sell-off in other emerging market currencies, as the dollar index inched near a one-year high amid fears of escalation in global trade tensions. So far rupee traded in the range of 68.7725-69.02 levels. Benchmark indices are trading lower amid heightened global trade tensions. Sensex is down 111 pts and Nifty below 11,440. Traders now await India’s July retail inflation data on Aug. 13. India’s industrial production data for June, meanwhile, is due post market close. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 68.70-69.20 levels. Rupee has an immediate support at 69.04 levels. A breach of the same may see rupee falling to 69.16 followed by 69.29 and 69.43 levels. On the positive side, rupee is likely to face resistance at 68.80 levels and if it is able to break the same then it may gain up to 68.66 levels followed by 68.55 and 68.44 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.30%, 4.32% and 4.31% respectively.

A bout of selling pressure is hitting the single currency and forcing EUR/USD to recede to levels last seen in July 2017 around the 1.1440 region. A wave of selling orders is now hitting the European currency, with stops being quickly triggered after spot broke below the critical support at 1.1500 the figure. Sterling is trading down 0.25% falling below 1.2800 level after the US Dollar appreciated strongly against the Euro. Sterling is trading at the lowest level since August 24 last year ahead of the UK data slot that includes Q2 GDP report and manufacturing output data. While the Q2 GDP in the UK is expected to rise 0.4% Q/Q, the manufacturing output is seen rising 0.3% m/m in June while increasing 1.0% y/y in June. The AUD/USD pair is trading at a five-day low of 0.7314, having created a bearish outside-day candle yesterday and risks falling further, courtesy of Reserve Bank of Australia’s (RBA) downward revision of the inflation forecasts. The Turkish lira hit an all-time low on Friday after a meeting the day before between a Turkish delegation and U.S. officials in Washington yielded no apparent solution to a diplomatic rift over the detention in Turkey of a U.S. pastor.