Welcome Guest! | World Time

Sydney

Tokyo

Singapore

Frankfurt

London

New York

Rupee opened higher, Yen lower vs. Dollar

Tuesday,   14-Jan-2020   09:03 AM (IST)

The Indian rupee opened the day higher at 70.74/75 levels compared to its previous close at 70.86/87 levels tracking rally in Yuan after US removes currency manipulator tag on China ahead of phase-one trade deal signing. India government bonds plunge, with the benchmark note yield rising to highest in nearly a month, after retail inflation breached upper tolerance level of the central bank by a significant margin. Benchmark indices were trading with slight cuts on Tuesday after the consumer price index (CPI)-based inflation print jumped to over five-and-half year high of 7.35 per cent in December. At 9:34 AM, the S&P BSE Sensex was trading at 41,837, down 23 point, while the broader Nifty50 was at 12,332, up 2 point. As per the technical indicators range for the USDINR pair may be 70.70-71.20 levels. Rupee has an immediate support at 70.89 levels. A breach of the same may see rupee at 71.01 followed by 71.23 levels. On the positive side rupee is likely to face resistance at 70.70 levels and if it is able to break the same then it may gain up to 70.63 levels followed by 70.52 levels.

The yen plumbed an eight-month low while the Yuan climbed to its highest level since July on Tuesday, after the U.S. Treasury Department reversed its decision in August to designate China as a currency manipulator. The announcement came as a high-level Chinese delegation arrived in Washington ahead of Wednesday’s signing of a trade agreement aimed at easing tensions between the two countries. The dollar hit an eight-month high of 109.95 yen in U.S. trade on Monday and last stood at 109.93 yen. The Japanese currency has weakened about 1.3% so far this year. In contrast, the offshore Yuan traded at 6.881 Yuan per dollar, near its strongest since late July, having gained about 1.2% so far this year. The risk-on mood in financial markets mildly supported the euro against the dollar. The European common currency, on a recovery after hitting a two-week low of $1.10855 on Friday, last traded at $1.1136, Sterling came under renewed pressure after data showed Britain’s economy grew at its weakest annual pace in more than seven years in November, raising the chances of a cut to interest rates. Sterling traded at $1.2990, having fallen to a three-week low of $1.2961 on Monday. The British unit traded near its December low against the euro, which fetched 85.73 pence. The Australian dollar was lethargic, struggling to get any lift from upbeat economic data of late, as weeks of bushfires have darkened the mood toward the economy.