Rupee higher, Australian Dollar up
Friday,
13-Sep-2019
12:23 PM (IST)
The Indian rupee is trading higher at 70.8825/8925 levels (12:15 pm) in the afternoon deals boosted by European Central Bank’s stimulus announcement and hint of progress on the US-China trade front. So far rupee traded in the range of 70.8825-71.02 levels. Benchmark indices are volatile in noon trade, with gains in auto and realty stocks offset by losses in pharma and public sector bank stocks. At 12:08 PM, the S&P BSE Sensex was trading at 37,322, up 52 points, while the broader Nifty50 was at 11,040, up 5 points. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 70.60-71.20 levels. Rupee has an immediate support at 71.00 levels. A breach of the same may see rupee at 71.14 followed by 71.27 and 71.39 levels. On the positive side rupee is likely to face resistance at 70.86 levels and if it is able to break the same then it may gain up to 70.73 levels followed by 70.65 and 70.50 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 4.46%, 4.31% and 4.43% respectively.
Amid holiday-thinned quiet trading, the market mood was buoyed by fresh hopes of a US-China trade deal after the US President Trump hinted overnight that he would prefer to get a whole deal done with China rather than an interim deal. The Asian stocks rallied while the US equity futures traded with mild gains. However, the Treasury yields were on the defensive amid increased dovish Fed expectations and ahead of the key US macro releases due later on Friday. Meanwhile, the safe-haven Gold remained depressed below $ 1500 mark. Amongst the G10 currencies, higher-yielding Antipodeans kept their recovery mode intact, with AUD/USD stuck near-daily tops of 0.6875 while the Kiwi hovers around 0.6400. The anti-risk Yen managed to recover some ground but remains better offered against the greenback near 108.15 region. The USD/JPY pair refreshed six-week highs at 108.26 on trade optimism. The resource-linked Loonie traded on the back foot amid the recent weakness in oil prices. Heading into Europe, the EUR/USD pair extends the overnight recovery towards 1.11 handle while the Cable retests 1.2350 despite ongoing Brexit challenges.
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