Rupee steady, EURUSD up

Tuesday,   25-Feb-2020   12:20 PM (IST)

The Indian rupee is trading steady at 71.85/86 levels in the afternoon deals after touching the high of 71.81/82 levels helped by rebound in most Asian currencies after yesterday’s slump. So far rupee traded in the range of 71.81-71.8950 levels. Benchmark indices were trading flat with a positive bias after massive sell-off in the previous session. At 12:07 PM, the S&P BSE Sensex was trading at 40,334, down 29 points, while the broader Nifty50 was at 11,851, up 22 point. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 71.60-72.20 levels. Rupee has an immediate support at 71.90 levels. A breach of the same may see rupee at 71.98 followed by 72.07 and 72.16 levels. On the positive side rupee is likely to face resistance at 71.81 levels and if it is able to break the same then it may gain up to 71.73 levels followed by 71.64 and 71.56 levels. In the forward segment 1mth, 3mth and 6mth annualized premia are currently trading at 3.64%, 3.71% and 3.70% respectively.

EUR/USD clings to the recent recovery gains above 1.0855, as we progress towards the European opening bells, with the dollar bulls on the back seat after a wild ride seen on Monday. The corrective bounce remains at the mercy of coronavirus-led risk trends. GBP/USD manages to recover to near 1.2940 region while heading into the London open on Tuesday. While the coronavirus headlines could be considered as backing the latest pullback, traders await the EU’s mandate for post-Brexit trade talks. Most of the dollar's losses are sustained into Tuesday. S&P futures are on the rise after a massive sell-off in markets on Monday, with some indexes suffering the biggest daily drop in two years amid coronavirus fears. Investors are taking profits on US bonds, yet the ten-year Treasuries are still around the lows of 1.40%. Gold prices have dropped below $1,650 after hitting a seven-year high of $1,690. Oil prices are also attempting a recovery after the downfall on Monday.