Welcome Guest! | World Time






New York

Rupee opened tad lower, Yen higher vs. Dollar

Wednesday,   18-Nov-2020   10:55 AM (IST)

The Indian rupee opened the day tad lower at 74.49/50 levels compared to its previous close at 74.4625/4725 levels amid mild pullback in equities on worries over US economic outlook. India's federal government bond yields trading marginally lower ahead of special open market bond purchase by RBI tomorrow. Domestic markets were choppy on Wednesday amid nervousness in the global markets. At 10:05 AM, the S&P BSE Sensex was trading at 43,973, up 20 point, while the broader Nifty50 was at 12,876 up 2 points. As per the technical indicators range for the USDINR pair may be 74.25-74.75 levels. Rupee has an immediate support at 74.61 levels. A breach of the same may see rupee at 74.76 followed by 74.88 levels. On the positive side rupee is likely to face resistance at 74.34 levels and if it is able to break the same then it may gain up to 74.22 levels followed by 74.07 levels.

The safe-haven Japanese yen sat near a one-week high and a steady U.S. dollar held commodity currencies in check on Wednesday, as worries about rising coronavirus cases tempered optimism around promising vaccine trials. At 104.14 per dollar, the yen has recouped more than half of the steep losses it suffered last week after Pfizer announced it had developed a working COVID-19 vaccine. Bitcoin, sometimes regarded as a haven asset or at least a hedge against inflation, has surged to a three-year high against the dollar and the risk-sensitive Australian and New Zealand dollars were a fraction softer, along with stocks. Before then, a tough winter looms. Surging cases have driven record hospitalisations and fresh restrictions on gathering in the United States, while new outbreaks vex authorities in Japan, South Korea and Australia. Federal Reserve Chair Jerome Powell said on Tuesday that there was "a long way to go" to economic recovery. The Australian dollar slipped 0.3% on Tuesday and was a shade weaker still on Wednesday at $0.7288. The New Zealand dollar was 0.1% softer at $0.6889. The euro was steady at $1.1862 and against a basket of currencies the dollar held at 92.439 - a little softer than earlier in the week as a slight bond rally has knocked the shine off U.S. Treasury yields. Elsewhere sterling edged higher as traders hoped for a Brexit trade deal breakthrough. Britain's chief negotiator David Frost has told Prime Minister Boris Johnson to expect a Brussels trade deal "early next week", The Sun newspaper reported, with "a possible landing zone" as soon as next Tuesday. As soft economic data in the United States weighed on dollar sentiment, strong industrial output in China kept the yuan's barnstorming run alive, sending it to an almost 29-month high of 6.5457 per dollar in offshore trade. The Chinese yuan has gained nearly 9% against the dollar since late May, despite the central bank taking various actions to temper its strength. Later on Wednesday British inflation figures are due and several U.S. Fed members make speeches. In emerging markets, focus is on a Bank of Thailand meeting, though most economists expect rates to be kept on hold.