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Rupee opened marginally lower, Dollar down vs. major currencies

Monday,   28-Sep-2020   10:50 AM (IST)

The Indian rupee opened the day marginally lower at 73.64/65 levels compared to its previous close at 73.61/62 levels amid focus on political developments in the U.S. and a slew of economic data through this week. Indian government bond yields largely unchanged in early trade as investors await 2H borrowing calendar that will be detailed this week. Equity markets gained nearly one per cent on Monday, tracking positive cues from their Asian peers, ahead of the Supreme Court hearing in the loan moratorium and interest waiver case. At 10:16 AM, the S&P BSE Sensex was trading at 37,760, up 371 point, while the broader Nifty50 was at 11,163 up 113 point. As per the technical indicators range for the USDINR pair may be 73.40-73.80 levels. Rupee has an immediate support at 73.73 levels. A breach of the same may see rupee at 73.86 followed by 73.94 levels. On the positive side rupee is likely to face resistance at 73.52 levels and if it is able to break the same then it may gain up to 73.44 levels followed by 73.31 levels.

The dollar was down on Monday morning in Asia, with a lack of big moves ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data later in the week. Although boosted by a rebound in U.S. stocks during Friday’s session and hovering near a two-month peak, signs of a stall in the U.S. economic recovery and the continuous political uncertainty in the run up to the country’s November’s presidential election capped gains. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down to 94.588. The dollar hit a two-month high during the previous week, the biggest weekly rise since early April. With November’s election drawing closer, investors will be looking to the first presidential debate scheduled for Tuesday amid the uncertainty. Although hopes for the U.S. Congress to pass the latest stimulus measures before the election are dimming, House Speaker Nancy Pelosi, expressed hope on Sunday that a deal can be reached as talks continue between the Democrats and the Republicans. Investors are also looking to the week's U.S. data, including September’s Conference Board (CB) consumer confidence index on Tuesday and the Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) on Thursday, which are expected to show a slowdown in the recovery as many of the stimulus measures have expired, cutting consumer spending. In other data news, Friday’s data on U.S. currency futures positions released by the U.S. Commodity Futures Trading Commission on Friday showed investors holding a big net short position of $33.989 billion in the dollar. Although the amount was up from the previous week’s $31.524 billion, and near the highest level in almost ten years, the data also showed a large net long position in the euro, which increased slightly during the previous week to $27.922 billion.