Rupee opened higher, Dollar lower vs. major currencies

Monday,   10-May-2021   11:04 AM (IST)

The Indian rupee opened the day higher at 73.35/36 levels compared to its previous close at 73.51/52 levels as disappointing US jobs report prompts timeline reassessment of Fed tapering. India's federal government bond yields little changed in early trade. Indian shares rose for a fourth straight session on Monday as metal stocks climbed further on strong commodity prices, with Tata Steel scaling a fresh peak. At 10:16 AM, the S&P BSE Sensex was trading at 49,511 up 304 point, while the broader Nifty50 was at 14,922 up 99 point. As per the technical indicators range for the USDINR pair may be 73.15-73.65 levels. Rupee has an immediate support at 73.56 levels. A breach of the same may see rupee at 73.72 followed by 73.82 levels. On the positive side rupee is likely to face resistance at 73.27 levels and if it is able to break the same then it may gain up to 73.12 levels followed by 73.00 levels.

The dollar languished near a more than two-month low versus major peers on Monday as investors continued to assess the implications for monetary policy of a disappointing U.S. employment report, ahead of inflation data this week. The U.S. created only a little more than a quarter of the jobs that economists had forecast last month and the unemployment rate unexpectedly ticked higher, pouring cold water on speculation the pandemic recovery could spark faster inflation that the Federal Reserve anticipates. The dollar index, which measures the greenback against six rivals, stood at 90.178, after dipping as low as 90.128 for the first time since Feb. 26. Notably, the British pound rallied 0.3%, rising as high as $1.4036 for the first time since Feb. 25, despite Scotland’s leader saying another referendum on independence was inevitable after her party’s resounding election victory.