Rupee opened lower, Dollar up vs. major currencies

Friday,   07-Aug-2020   10:35 AM (IST)

The Indian rupee opened the day lower at 75.05/06 levels compared to its previous close at 74.93/94 on Yuan-led decline in Asian currencies amid mounting US and China tensions.Indian government bond yields were marginally higher in early session, ahead of fresh supply of debt later today and as sentiment remain bearish after MPC policy yesterday. The equity markets were trading with slight cuts on Friday amid mixed global cues. At 10:08 AM, the S&P BSE Sensex was trading at 38,006 down 19 point, while the broader Nifty50 was at 11,198 down 2 point. As per the technical indicators range for the USDINR pair may be 74.70-75.20 levels. Rupee has an immediate support at 75.09 levels. A breach of the same may see rupee at 75.18 followed by 75.28 levels. On the positive side rupee is likely to face resistance at 74.89 levels and if it is able to break the same then it may gain up to 74.73 levels followed by 74.65 levels.

The dollar was up on Friday morning in Asia, reversing some of its losses earlier in the week. But gains were capped by decreasing U.S. Treasury yields, ever-increasing numbers of COVID-19 cases, and the stalemate in the U.S. Congress over the latest stimulus package. U.S. Treasury Secretary Steven Mnuchin warned that Republicans and Democrats are “still very far apart” on key issues” after concluding talks on Thursday. But he added that President Donald Trump is prepared to issue an executive order if the two sides fail to meet their end-of-the-week deadline. But some investors are skeptical that the dollar will retain its gains, especially against the EUR and JPY, with hopes of a V-shaped U.S. recovery fading quickly. Meanwhile investors will be looking to the U.S. non-farm payrolls report, due later in the day, for further clues that the economic momentum is slowing.