Rupee opened lower, Dollar firm vs. major currencies

Friday,   12-Apr-2019   09:07 AM (IST)

The Indian rupee opened the day lower at 69.04/05 levels compared to its previous close at 68.92/93 levels and dropped further 69.23/24 levels in early deals on strong U.S. labor data and amid decline in regional currencies ahead of China trade data. Indian federal government bonds little changed in early trade as investors await weekly supply and March inflation data due after market. Benchmark indices opened flat with some positive bias taking cues from Asian markets. At 9:29 AM, the S&P BSE Sensex was trading at 38,691, up 84 points, while the broader Nifty50 was at 11,615, up 18 point. As per the technical indicators range for the USDINR pair may be 68.80-69.50 levels. Rupee has an immediate support at 69.31 levels. A breach of the same may see rupee at 69.42 followed by 69.58 levels. On the positive side rupee is likely to face resistance at 69.00 levels and if it is able to break the same then it may gain up to 68.83 levels followed by 68.62 levels.

The dollar held firm on Friday after strong U.S. labor and inflation data soothed concerns about the world's largest economy, while falling oil prices weighed on commodity-linked currencies such as the Canadian and Australian dollars. The dollar index against a basket of six major currencies was steady at 97.166 after climbing 0.25 percent the previous day. The index was headed for a weekly loss of 0.25 percent, having stumbled at the start of the week as Treasury yields fell in the wake of a mixed March U.S. non-farm jobs report. Data released on Thursday showed first-time filings for U.S. jobless benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength. Overall producer prices increased 0.6% in March, the largest rise since October. The dollar was little changed at 111.72 yen after gaining 0.6 percent overnight on the robust U.S. data and the subsequent rise in U.S. Treasury yields. The greenback's advance, however, stalled ahead of the 112.00 yen threshold. The dollar had sagged on Wednesday after a mixed report on domestic consumer prices reinforced the notion that underlying U.S. inflation remains tame. The pound was steady at $1.3053 after dipping 0.25 percent the previous day against the broadly firmer dollar. Volatility for sterling plunged after a midweek deal at an emergency European Union summit to postpone Britain's exit from the bloc to Oct. 31 meant it would not crash out this week without a treaty to smooth its passage. The Canadian dollar was more or less steady at C$1.3385 per dollar after shedding 0.5 percent the previous day as crude oil prices retreated from five-month highs. The Australian dollar dipped 0.1 percent to $0.7117 to extend losses from a day earlier, when it sank 0.7 percent. A decline in copper prices and political uncertainty were also seen weighing on the Aussie. Australian Prime Minister Scott Morrison on Thursday announced a general election to be held on May 18.