Rupee trading flat, Euro holding gains vs. Dollar
Friday,
21-Sep-2018
12:21 PM (IST)
The Indian rupee is trading flat at 71.85/86 levels (12:15 pm) in the afternoon deals compared to its opening at 71.85/86 levels. Rupee touched the high of 71.7750/7850 levels today as reduced global safe-haven bets weighed on greenback demand, while investors at home await measures from the policymakers to support the local unit. Global risk-on sentiment coupled with expectations of measures from RBI, including a separate window for oil importers, lifted the rupee from its recent record low levels. India may begin payment to Iran in rupees for crude oil, according to several media reports, while the ET Now reported on Sep. 19 that the Reserve Bank of India is looking at the possibility of allowing oil companies to buy dollars directly from the central bank. Rupee dropped to touch the low of 71.98/99 levels today due to importers dollar demand. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 71.45-72.25 levels. Rupee has an immediate support at 71.96 levels. A breach of the same may see rupee falling to 72.07 followed by 72.17 and 72.26 levels. On the positive side, rupee is likely to face resistance at 71.77 levels and if it is able to break the same then it may gain up to 71.66 levels followed by 71.55 and 71.44 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.49%, 4.50% and 4.39% respectively.
The EUR/USD holds onto to the gains it enjoyed on Thursday as markets remain calm on trade tensions with China despite further comments by President Trump against China. Euro-zone Flash PMI's are eyed. The US announcement a 10% tariff on $200 billion worth of Chinese goods earlier this week. The move was communicated in advance, China's response was moderate, and the tariff level is relatively low. The Japanese yen showed little reaction to the domestic CPI data released Friday that has risen to its highest point in seven months. The U.S. dollar gained but still hovered near two-month lows. The country’s national Consumer Price Index came in at 1.3%, beating the expected 1.1% and improved on the previous reading of 0.9%.The "core-core" CPI, which excludes food and energies prices, came in at 0.4%, also meeting expectations. Meanwhile, Japanese Prime Minister Shinzo Abe won his third three-year term as head of the ruling Liberal Democratic Party on Thursday. The yen was little changed following the data, with the USD/JPY pair last traded at 112.87.
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