Rupee opens slightly weak, Sterling lower Vs dollar

Wednesday,   13-Mar-2019   09:15 AM (IST)

The Indian rupee opened slightly lower at 69.74/75 levels compared to its previous close at 69.7025/7125 levels, tracking dollar’s advance against most Asian currencies. Asian currencies are mostly lower amid pullback in regional equities after two-day rally. Benchmark equity indices are trading flattish to positive. Indian government bonds are trading lower in early trade as retail inflation in February gains pace for the first time in five months to a four-month high; uncertainty over continuation of bond purchases from the central bank further weighs. As per the technical indicators range for the USDINR pair may be 69.40-70.10 levels. Rupee has an immediate support at 69.84 levels. A breach of the same may see rupee at 69.98 followed by 70.18 levels. On the positive side rupee is likely to face resistance at 69.59 levels and if it is able to break the same then it may gain up to 69.42 levels followed by 69.34 levels.

Sterling is trading below 1.31 against the dollar today. Britain will confront head-on the threat of a no-deal Brexit in a parliamentary vote with huge ramifications for Prime Minister Theresa May. On Wednesday, lawmakers will decide whether to tear the country out of the European Union with no agreement in place in 16 days’ time, or give themselves the chance to delay Brexit in the hope of securing better terms. If - as expected - Parliament rejects leaving without an accord on March 29, there will be another vote Thursday on whether to ask the EU for more time and delay departure day. An extension, which markets would welcome, could however provoke furious pro-Brexit officials to quit May’s administration, and even set in train a chain of events that could bring her government down.  Elsewhere, the dollar was on the back foot after data on Tuesday showed U.S. consumer prices rose at a slower than expected pace. The dollar index against a basket of six major currencies was little changed at 97.004 after losing 0.3 percent overnight. The euro was steady at $1.1288 after rising 0.4 percent the previous day.