Rupee inches up, Pound lower vs. Dollar
Monday,
27-Jan-2020
12:21 PM (IST)
The Indian rupee has inches up to 71.39/40 levels (12:15 pm) in the afternoon deals on slight dollar selling in the market. Rupee opened lower at 71.51/52 levels today as worries over the spread of the China virus continued to weigh on risk appetite and the Chinese yuan. Benchmark indices pared some of the losses after opening half a per cent lower amid weakness in global equities as investors grew increasingly anxious about the economic impact of China’s spreading virus outbreak. At 12:05 PM, the S&P BSE Sensex was trading at 41,437, down 176 points, while the broader Nifty50 was at 12,199, down 50 point. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 71.25-71.65 levels. Rupee has an immediate support at 71.47 levels. A breach of the same may see rupee at 71.59 followed by 71.66 and 71.74 levels. On the positive side rupee is likely to face resistance at 71.35 levels and if it is able to break the same then it may gain up to 71.24 levels followed by 71.16 and 71.01 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 3.53%, 4.05% and 4.04% respectively.
GBP/USD extends losses toward 1.3050 amid fears of China’s coronavirus outbreak, hard Brexit. Tories fend off awkward details on Brexit, the EU warns the UK PM to not use the US trade deal for bargaining. Focus on Thursday’s BOE for fresh impulse. EUR/USD is looking weak, having charted its longest weekly losing streak since November 2018. An above-forecast German IFO Expectations index is needed to stave off a deeper drop. The pair needs to retake a crucial ascending trend line to invalidate bearish pressures. The yuan fell in offshore trade on Monday to its lowest level in three weeks as the death toll in China from the spread of a new coronavirus mounted, raising worries authorities are struggling to contain the outbreak and sparking a bout of risk aversion. Japan’s currency, often sought as a safe-haven in times of uncertainty, initially jumped versus the dollar to the highest since Jan. 8 before erasing some of those gains as investors gauged public health officials’ response to the virus. China’s cabinet announced it will extend the Lunar New Year holidays to Feb. 2 to strengthen the prevention and control of the new coronavirus, state broadcaster CCTV reported early on Monday.
|