Rupee opens flat, Sterling higher Vs dollar

Friday,   15-Mar-2019   09:15 AM (IST)

The Indian rupee opened flat at 69.33/34 levels compared to its previous close at 69.3525/3625 levels, but quickly recovered on dollar sales by foreign banks, probably for custodial clients. Indian government bonds are trading little changed ahead of heavy supply of bonds via penultimate FY bond auction later today. Benchmark equity indices are trading positive. As per the technical indicators range for the USDINR pair may be 68.80-69.50 levels. Rupee has an immediate support at 69.35 levels. A breach of the same may see rupee at 69.55 followed by 69.80 levels. On the positive side rupee is likely to face resistance at 69.03 levels and if it is able to break the same then it may gain up to 68.85 levels followed by 68.54 levels.

The British pound edged up on Friday in Asia after lawmakers approved a motion setting out the option to ask the European Union (EU) for a short delay if parliament can agree on a Brexit deal by March 20, or a longer delay if no deal can be agreed in time. Lawmakers must now decide whether to back a deal they feel does not offer a clean break from the EU, or reject it and accept that Brexit could be watered down or even thwarted by a long delay. Meanwhile, the USD/JPY pair edged down 0.1% to 111.62 following the Bank of Japan (BoJ)’s decision to keep its short-term interest rate target at minus 0.1% as expected. The central bank maintained the 10-year JGB yield target around 0%, also in line with expectation. The BoJ tweaked its assessment of the Japanese economy, citing growing risks from the slowdown in the external sector. Meanwhile, U.S.-China trade talks returned to focus after U.S. President Donald Trump said during a St. Patrick’s Day reception on Thursday that the U.S. will probably know in the next three or four weeks whether a trade deal with China is possible. “If that one gets done, it will be something that people will be talking about for a long time,” Trump said, noting that China has been “very responsible.” Citing three sources briefed on the discussion, CNBC reported that China is planning a state visit by President Xi Jinping and that Beijing wants to have all the details of the trade deal fully ironed out before its leader sits down with Trump.