Rupee higher, EURUSD off highs

Tuesday,   31-Mar-2020   12:14 PM (IST)

The Indian rupee is trading higher at 75.42/43 levels (12:10 pm) in the afternoon deals after touching the high of 75.38/39 levels tracking a rebound in most Asian currencies and equities amid an unexpected advance in China’s manufacturing data. Rupee touched the low of 75.5850/5950 levels today on dollar buying by foreign banks likely for closure of their books. Equity markets were trading higher. At 12:04 PM, the S&P BSE Sensex was trading at 29,325, up 885 points, while the broader Nifty50 was at 8,557, up 276 point. As per the technical indicators, range for USDINR pair for the remaining part of the day may be 74.80-76.00 levels. Rupee has an immediate support at 75.55 levels. A breach of the same may see rupee at 75.67 followed by 75.76 and 75.84 levels. On the positive side rupee is likely to face resistance at 75.35 levels and if it is able to break the same then it may gain up to 75.25 levels followed by 75.14 and 75.02 levels.

Forex today in Asia witnessed some volatile swings in early trading hours this Tuesday, as it is the last trading data for Japan’s fiscal year and the end of the quarter globally. In lieu of the same, most majors saw the mini flash crash as the US dollar spiked hard across its major peers after the Japanese traders piled on to US currency amid talks of dollar shortage and fiscal year-end. Meanwhile, a positive surprise delivered by the Chinese Manufacturing and Services PMIs helped extend the overnight risk-on mood into Asia. However, the Asian stocks and US equity futures failed to hold onto early gains as the coronavirus spread showed no signs of slowing down while its growing economic costs kept investors on the edge. Amongst the G10 fx space, USD/JPY dipped to 107.78 but rebounded almost a big figure on the dollar’s sharp surge, having pierced through 108.00 to reach 108.71 highs. The Aussie slipped to 0.6079 lows but staged a solid comeback to 0.6200 after Chinese PMI returned to expansion in March. The Canadian dollar failed to benefit from the oil-price rebound, as USD/CAD traded with mild gains around 1.4200. EUR/USD stalled its recovery just above 1.1050 and fell briefly below 1.1000 while GBP/USD was the main laggard, with 1.2300 back on sellers’ radar. Meanwhile, gold prices wavered in a familiar 1600/1650 range, awaiting fresh catalyst for the next direction.