Rupee opened higher, Euro higher vs. Dollar

Thursday,   18-Apr-2019   09:03 AM (IST)

The Indian rupee opened the day higher at 69.46/47 levels compared to its previous close at 69.60/61 amid decline in offshore non-deliverable forwards. Hedging by software exporters at beginning of new fiscal year is helping rupee overcome weak regional cues. Indian government bonds tumble with benchmark note at seven-week low, ahead of fresh supply of bonds and MPC meeting minutes after market. Benchmark indices opened strong with Nifty topping the 11,800 level. At 9:28 AM, the S&P BSE Sensex was trading at 39,402, up 126 points, while the broader Nifty50 was at 11,821, up 34 point. As per the technical indicators range for the USDINR pair may be 69.25-69.75 levels. Rupee has an immediate support at 69.64 levels. A breach of the same may see rupee at 69.78 followed by 69.87 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 69.33 levels followed by 69.19 levels.

The euro was buoyant on Thursday after more evidence of strength in China improved the outlook for the global economy, with the market looking next to European indicators to provide the currency with a further boost. The euro was a shade higher at $1.1298, having eked out a gain of 0.1 percent the previous day. The single currency has steadily recovered from a recent low of $1.1183 plumbed at the start of April. The euro was lifted after data on Wednesday showed China's economy grew at a steady 6.4 percent pace in the first quarter, defying expectations for a further slowdown, as industrial production surged and consumer demand showed signs of improvement. The 10-year German bund yield rose to a one-month high of 0.10 percent overnight, in a sharp rebound from a 2-1/2-year low of minus 0.094 percent set at the end of March. Bund yields had sunk in March as concerns about slowing global growth gripped the broader market. Investors are now watching Chinese and European economic data for signs that the global economy is performing better than initially feared. The Purchasing Managers Indexes (PMIs) for the manufacturing and service sectors in Europe due later on Thursday will provide the next indication of strength for the European economy. The dollar index against a basket of six major currencies was flat at 97.015 after dipping 0.05 percent the previous day. The U.S. currency was steady at 112.035 yen after briefly touching a four-month peak of 112.17 on Wednesday amid a bounce in U.S. Treasury yields to a one-month high. Commodity-linked currencies sagged after a surge in crude oil prices ran out of steam.