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Rupee recovers, Sterling lower Vs dollar

Thursday,   14-Mar-2019   12:25 PM (IST)

The Indian rupee is trading higher at 69.63/64 levels (12:15 pm) in the afternoon deals after touching a low of 69.75/76 levels, after the RBI announced a buy-sell swap auction of $5 Bln for a tenure of three years on March 26. India's benchmark 2028 bond fell in a volatile morning trade as hopes of more OMO purchases waned after the RBI announcement. Benchmark equity indices are trading flattish to negative. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 69.30-69.90 levels. Rupee has an immediate support at 69.78 levels. A breach of the same may see rupee at 69.96 followed by 70.14 levels. On the positive side rupee is likely to face resistance at 69.42 levels and if it is able to break the same then it may gain up to 69.24 levels followed by 69.06 levels. In the forward segment, 1mth, 3mth and 6mth annualized premia are currently trading at 4.19%, 4.15% and 3.83% respectively.

The British pound fell on Thursday in Asia after U.K. lawmakers voted to reject leaving the EU without a withdrawal agreement. The Yuan also slid following the release of below-forecast factory output data. On Wednesday, U.K. lawmakers voted by 312 to 308 for an amendment that ruled out the U.K. leaving the EU without a withdrawal agreement. Lawmakers are now expected later today to vote for a delay to Brexit on March 29. The GBP/USD pair initially rallied more than 2% following the news but gave up some of its earlier gains today. Meanwhile, the USD/CNY pair edged up 0.1% to 6.7108 after data showed China’s industrial output grew at the slowest pace in 17 years for the first two months in 2019. Retail sales and fixed-asset investment came in marginally above estimates.