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Rupee opened tad higher, Mexican Peso up vs. Dollar

Monday,   10-Jun-2019   09:02 AM (IST)

The Indian rupee opened the day tad higher at 69.45/46 levels compared to its previous close at 69.47/48 levels and moves up to 69.3975/4075 levels in early deals after disappointing US jobs data increases probability of Fed rate cut. Indian government bonds lower in early trade after rising for the last four weeks, as Brent crude oil gains for third consecutive session. Benchmark indices tracked their Asian peers to open today's session on a higher note, lifted by tech and bank stocks. At 9:29 AM, the S&P BSE Sensex was trading at 39,930, up 311 point, while the broader Nifty50 was at 11,960, up 89 point. As per the technical indicators range for the USDINR pair may be 69.15-69.65 levels. Rupee has an immediate support at 69.55 levels. A breach of the same may see rupee at 69.68 followed by 69.80 levels. On the positive side rupee is likely to face resistance at 69.29 levels and if it is able to break the same then it may gain up to 69.07 levels followed by 68.95 levels.

The Mexican peso jumped against the dollar early in Asia on Monday after the United States and Mexico struck a migration deal late last week to avert a tariff war, providing much-needed relief to fragile market sentiment. Over the past year, trade disputes between the United States and its trading partners, including a long-running conflict with China, have slowed global growth and unsettled financial markets. Group of 20 finance leaders on Sunday said that trade and geopolitical tensions have "intensified", raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening U.S.-China trade conflict. The Mexican peso rose as much as 2% against the dollar as trading resumed for the first time after Mexico agreed on Friday to expand along the entire border a program that sends migrants seeking asylum in the United States to Mexico. The peso was last up 1.65% at 19.30 pesos per dollar. U.S. President Donald Trump had threatened to impose 5% import tariffs on all Mexican goods starting on Monday if Mexico did not commit to do more to tighten its borders. Against the safe-haven yen, the dollar gained 0.2% to 108.425 yen. The Japanese currency tends to benefit during geopolitical or financial stress as Japan is the world's biggest creditor nation. Futures for the S&P 500 were last up nearly half a percent. Still, the dollar's gains were checked by rising expectations the Federal Reserve will cut interest rates during the second half of the year. Those views were bolstered on Friday when data showed nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists in a Reuters poll, suggesting the loss of momentum in economic activity was spreading to the labor market. Fed funds rate futures are still pricing in more than two 25-basis point rate hikes by the end of this year even after their retreat early on Monday after the U.S.-Mexico migration deal. Against a basket of six peers, the dollar rose 0.2% to 96.716, recovering slightly after ending with a 1.2% loss last week, its worst weekly performance since the week of Feb. 16 last year. Elsewhere in the currency market, the euro edged down 0.1% to $1.1318, retreating from an 11-week high of $1.1348 touched on Friday. The Australian dollar was down a shade at $0.6995, giving up some of last week's gains, when it rose 0.9%.