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Rupee opened lower, Major currencies range bound

Tuesday,   16-Apr-2019   09:03 AM (IST)

The Indian rupee opened the day lower at 69.49/50 levels compared to its previous close at 69.42/43 levels after higher-than-expected India trade gap in March. Rupee further pressured by decline in most Asian currencies, a day ahead of China GDP and March activity data. India’s trade deficit narrowed to $10.89 billion in March from a year ago, helped by rise in exports, the trade ministry said in a statement on Monday. Trade deficit was $13.51 billion in March 2018. Merchandise exports rose 11.02 percent to $32.55 billion in March from a year earlier, while imports were up 1.44 percent to $43.44 billion during the same period, data showed. Indian government bonds little changed in thin early trade as investors await minutes of MPC's April meeting. Benchmark indices opened higher today with BSE Sensex moving over 100 points higher and Nifty testing its highest-ever level. At 9:25 AM, the S&P BSE Sensex was trading at 39,104, up 198 points, while the broader Nifty50 was at 11,745, up 55 point. As per the technical indicators range for the USDINR pair may be 69.00-69.65 levels. Rupee has an immediate support at 69.64 levels. A breach of the same may see rupee at 69.77 followed by 69.88 levels. On the positive side rupee is likely to face resistance at 69.25 levels and if it is able to break the same then it may gain up to 69.02 levels followed by 68.90 levels.

Major currencies remained confined to well-trodden ranges on Tuesday, as markets look next to European and Chinese data for more evidence that the worst may be over for the global economy. The yen remained close to 2019 lows against the U.S. and Australian dollars after investors reduced exposure to the safe-haven currency to seek higher yields elsewhere. The Japanese currency has fallen against both units after rising to recent highs in late March, said Masafumi Yamamoto, chief currency strategist at Mizuho Securities. The dollar was unchanged at 112.00 yen. It traded less than a sixth of a percent off the year's high of 112.135 yen hit in early March. The Aussie was basically flat at 80.35 yen, also trading above its 200-day moving average, for the third session, after last breaching the key technical level in December last year. The data in focus includes Germany's ZEW economic index for April, due around 0900 GMT, and China's gross domestic product set for Wednesday, which is expected to offer more insight on the health of the world's second-largest economy. Chinese exports and credit data last week signaled some stabilization, prompting markets to adjust their outlook on global growth. Market participants eyed European manufacturing data due on Thursday for cues on whether growth in that region is improving. The euro was steady at $1.1307 after inching up less than a tenth of a percent overnight. The dollar index last stood at 96.932 after ending the previous session basically unchanged. Investors also kept their focus on trade issues, including talks between Japanese Economy Minister Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer.