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Rupee opened higher, Dollar in range vs. major currencies

Tuesday,   06-Nov-2018   09:08 AM (IST)

The Indian rupee opened the day higher at 72.95/96 levels compared to its previous close at 73.12/13 levels amid broad decline in dollar ahead of closely watched US mid-term elections. Indices has opened higher on firm rupee and taking cues from Asian markets. In early trade, S&P BSE Sensex reclaimed 35,000 level mark and Nifty50 opened above 10,550. Indian government bonds gain in thin early trade ahead of central bank’s INR100 billion note purchase and as recovery in rupee helps. As per the technical indicators range for the USDINR pair may be 72.70-73.20 levels. Rupee has an immediate support at 73.10 levels. A breach of the same may see rupee at 73.22 followed by 73.36 levels. On the positive side rupee is likely to face resistance at 72.87 levels and if it is able to break the same then it may gain up to 72.75 levels followed by 72.62 levels.

The dollar stuck to tight ranges against its major rivals on Tuesday as investors favored caution ahead of U.S. midterm elections later in the day. The U.S. congressional election is widely expected to boost the Democratic Party, which has a strong chance of winning control of the House of Representatives, with Republicans seen likely to keep the Senate. The dollar index was basically flat at 96.319, moving in a range between 96.315 and 96.334. It hit a 16-month high of 97.20 last week. The euro was slightly higher at $1.1411, about one percent above this year's trough of $1.1301 touched on Aug. 15. Euro zone finance ministers called on Italy overnight to change its 2019 budget to conform with European Union rules before a deadline set for next week, but Rome dug in its heels saying its disputed deficit plan would not change. Against the yen, the dollar changed hands 0.1 percent higher at 113.27 yen, close to a four-week high of 113.385 yen reached last week. The Australian dollar held steady at $0.7211 as traders awaited a monetary policy decision from Australia's central bank due at 0330 GMT. The Aussie traded 2.7 percent above a more than two-and-a-half-year low of $0.7021 touched on Oct. 26. The Reserve Bank of Australia is expected to extend its record spell of steady rates well into next year, according to a Reuters poll published on Monday. All but one of the 39 analysts polled expected the RBA to hold rates at 1.50 percent at Tuesday's policy meeting, the poll found. The pound rose 0.1 percent to $1.3063, trading just off a two-week high of $1.3070 hit earlier in the session after a media report suggested the E.U. and Britain may be inching closer to an orderly Brexit.