Rupee opened higher, Offshore Chinese Yuan lower vs. Dollar

Tuesday,   28-Jan-2020   09:03 AM (IST)

The Indian rupee opened the day higher at 71.3650/3750 levels compared to its previous close at 71.4350/4450 levels amid further fall in oil prices. Indian government bonds largely unchanged before state debt auction today; investors await federal budget due on February 1, where growth-boosting measures are expected. Benchmark indices were trading with gains. At 9:36 AM, the S&P BSE Sensex was trading at 41,268, up 113 point, while the broader Nifty50 was at 12,147 up 28 point. As per the technical indicators range for the USDINR pair may be 71.15-71.65 levels. Rupee has an immediate support at 71.47 levels. A breach of the same may see rupee at 71.55 followed by 71.68 levels. On the positive side rupee is likely to face resistance at 71.33 levels and if it is able to break the same then it may gain up to 71.20 levels followed by 71.11 levels.

The Yuan was mired near its weakest level in a month in offshore trade on Tuesday as heightened anxiety about the economic impact of a deadly new coronavirus in China battered riskier assets. The Japanese yen, considered a safe-haven, traded near a three-week high versus the dollar as investors nervously watched the death toll from the virus climb to more than 100. Global stocks and oil prices have tumbled over recent sessions on fears the virus could do further damage to China's already weakened economy, an engine of global growth. Chinese authorities have stepped up efforts to curb the spread of the virus, imposing stiff restrictions on travel and movement of people. Many of the largest Chinese cities in central Hubei province, where the flu-like virus originated late last year, are already on lockdown. Scores of Chinese are canceling travel plans during the Lunar New Year, normally the busiest tourism season, while businesses in many cities have shut down. In the offshore market, the Yuan was quoted at 6.9813 per dollar, near its weakest since Dec. 30. China's onshore markets are closed this week for Lunar New Year. The yen held steady at 109.01 per dollar, close to its strongest level since Jan. 8. Japan's currency has risen for the past five trading sessions against the greenback due to the growing risk aversion.