Rupee opened lower, Dollar steady vs. major currencies
Monday,
14-Jun-2021
10:37 AM (IST)
The Indian rupee opened the day lower at 73.20/21 levels compared to its previous close at 73.0675/0775 levels on broad dollar strength ahead of Fed’s policy meeting. Asian currencies slip after dollar index reaches above 90.50. Fed's two-day meeting begins tomorrow. India’s federal government bond yields largely unchanged in early trade as investors await May inflation data due after market. Indian shares on Monday retreated from record highs hit in the previous session, weighed down by Adani Group stocks. At 10:18 AM, the S&P BSE Sensex was trading at 52,285 down 190 point, while the broader Nifty50 was at 15,721 down 79 point. As per the technical indicators range for the USDINR pair may be 72.90-73.40 levels. Rupee has an immediate support at 73.23 levels. A breach of the same may see rupee at 73.35 followed by 73.48 levels. On the positive side rupee is likely to face resistance at 73.04 levels and if it is able to break the same then it may gain up to 72.88 levels followed by 72.75 levels.
The U.S. dollar held steady against major currencies on Monday, after posting its biggest weekly gain in more than a month, as traders closed short positions ahead of a Federal Reserve policy meeting this week. The greenback was trading little changed at $1.21075 against the euro in Asia, after touching an almost one-month top of $1.2093 in the previous session, amid caution ahead of the Fed meeting that runs two days to Wednesday. The yen was at 109.715, after weakening to 109.840 on Friday for the first time since June 4. The dollar index, which measures the U.S. currency against six rivals, was mostly flat at 90.510 from as high as 90.612 on Friday. It finished last week with a 0.4% advance. In recent weeks, the index has fluctuated as traders weighed if inflationary pressure as the economy reopens after the pandemic could force the Federal Open Market Committee (FOMC) into an earlier tapering of stimulus. Repeated comments by policy makers that inflation would be transitory calmed those jitters, but markets also now anticipate the Fed may be close to giving clues on the timing for slimming its asset-purchase programme. Among other currencies, New Zealand’s dollar held onto declines from last week to trade at $0.71315, after matching the lowest since mid-April at $0.71160 on Friday. In cryptocurrencies, bitcoin traded around $39,000 after recovering from close to $31,000 last week.
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