Rupee opened higher, Dollar lower vs. major currencies
Friday,
17-Mar-2023
09:45 AM (IST)
The Indian rupee opened the day higher at 82.4850/4950 levels compared to its previous close at 82.73/74 levels aided by the slight improvement in risk following bank rescues in the U.S. and Europe. Asian shares were mostly higher, taking support from the overnight rally on their U.S. peers. Asian currencies are higher. Indian government bond yields marginally higher in early session on Friday, tracking U.S. peers. Domestic equity markets opened higher amid strong global cues. At 9:25 AM, the S&P BSE Sensex was trading at 57,989 up 355 point, while the broader Nifty50 was at 17,093 up 108 point. As per the technical indicators range for the USDINR pair may be 82.30-82.80 levels. Rupee has an immediate support at 82.62 levels. A breach of the same may see rupee at 82.77 followed by 82.94 levels. On the positive side rupee is likely to face resistance at 82.42 levels and if it is able to break the same then it may gain up to 82.31 levels followed by 82.14 levels.
The dollar slipped on Friday as risk sentiment improved after authorities and banks moved to ease stress on the financial system in major markets, taking heat off other major currencies that tumbled earlier in the week in the wake of bank turmoil. Large U.S. banks on Thursday injected $30 billion in deposits into First Republic Bank, swooping in to rescue the lender, which was caught up in a widening crisis triggered by the collapse of two other mid-size U.S. banks over the past week. Cautious calm spread across markets on Friday, giving room for rises in risk-sensitive currencies like the Australian and New Zealand dollars, which were among the largest gainers in Asia trade. The Aussie rose 0.4% to $0.6684, while the kiwi edged 0.3% higher to $0.62145. The $30 billion rescue package, put together by top power brokers from the U.S. Treasury, Federal Reserve and banks, followed Credit Suisse's announcement earlier on Thursday that it would borrow up to $54 billion from the Swiss National Bank. It had similarly become embroiled in widespread contagion following the implosion of U.S.-based Silicon Valley Bank (SVB). But even as a 30% plunge in the embattled Swiss lender's shares stoked fears about the health of Europe's banks, the European Central Bank (ECB) nonetheless went ahead with a hefty 50-basis-point rate hike at its policy meeting on Thursday. ECB policymakers sought to reassure investors that euro zone banks were resilient and that if anything, the move to higher rates should bolster their margins. The euro's reaction to the decision was fairly muted, though it managed to eke out a 0.3% gain on Thursday. It was last 0.14% higher at $1.0625. Elsewhere, sterling rose 0.15% to $1.2128, while the Swiss franc gained 0.1%. Earlier in the week, the Swissie had plunged the most against the dollar in a day since 2015. The Japanese yen remained elevated, and was last roughly 0.3% higher at 133.30 per dollar. Fragile market sentiment had traders flocking to the yen - typically considered a safer bet in times of turmoil - on mounting worries that the recent stress unfolding across banks in the U.S. and Europe could be just an early stage of a widespread systemic crisis. The Federal Reserve's monetary policy meeting next week now moves to centre stage. Some investors are hoping that the Fed could slow down on its aggressive rate-hike campaign in a bid to ease the stress on the financial sector.
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