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Rupee trading higher, Pound up vs. Dollar

Wednesday,   10-Oct-2018   12:29 PM (IST)

The Indian rupee is trading higher at 74.11/12 levels (12:15 pm) in the afternoon deals after touching the high of 74.06/07 levels after a media report said policymakers are considering to tap non-resident Indians to boost dollar inflows, while a drop in U.S. Treasury yields also weighed on greenback demand. Gains in other Asian peers and stronger domestic equities also helped the trading sentiment. However, an overnight jump in crude oil prices continued to add pressure on the local unit. The benchmark Brent crude oil was trading at $84.87 per barrel. So far rupee traded in the range of 74.06-74.2825 levels. The benchmark indices are trading over 1 per cent higher following a firm rupee against the dollar. At 12:17 PM, the S&P BSE Sensex was trading at 34,691, up 392 points while the broader Nifty50 was ruling at 10,436, up 135 points. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 73.70-74.40 levels. Rupee has an immediate support at 74.24 levels. A breach of the same may see rupee falling to 74.37 followed by 74.46 and 74.55 levels. On the positive side, rupee is likely to face resistance at 74.01 levels and if it is able to break the same then it may gain up to 73.93 levels followed by 73.79 and 73.66 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.64%, 4.47% and 4.31% respectively.

Sterling is trading on the upside near 1.3170 area after rising more than 130 pips on Tuesday on rumors of Brexit deal being near completion. The UK manufacturing output and GDP data are due to report 0.1% monthly increase, while the Bank of England chief economist is scheduled to speak as well later on Wednesday. Euro is trading flat near 1.1500 with Italy remaining the market focus with its push for a higher deficit. Italian politics still remain in the center of market attention. Euro benefitted from the US benchmark Treasury yields retreating from 7-year highs on Tuesday and managed to leap off 7-week lows.