Today's Currency News : 08.11.2019
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Buy USDINR; target of 71.55 - 71.65
Spot Currency
The rupee closed slightly higher by two-paise yesterday supported by an appreciating Chinese Yuan and positive inflows in the last few sessions. However, it is likely to open sharply lower today amid strength in US$ and rising concerns over domestic fiscal slippage • The US$ index recouped 98.0 levels to end higher against major currencies. Strength in US equities coupled with rising yields is positive for US$. Chinese Yuan has appreciated towards 6.97 levels yesterday amid news that the US and China may work towards reducing tariffs on a proportionate basis. This is mildly positive for EM currencies, including rupee.
Benchmark yield
Domestic benchmark 10-year yields ended higher at 6.52% in the previous session. Domestic GST collections for October were at Rs 95380 crore, down 5.29% on a YoY basis • The US 10-year benchmark yields extended further gains to close at 1.86% in the previous session. Risk sentiments improved supported by overall strength in US equities while a sharper rally in yields could be a signal that the US economy is relatively preforming well.
Currency futures on NSE
The dollar-rupee November contract on the NSE was at 71.04 in the previous session. Open interest increased 7.67% in the previous session • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
The rupee closed slightly higher by two-paise yesterday supported by an appreciating Chinese Yuan and positive inflows in the last few sessions. However, it is likely to open sharply lower today amid strength in US$ and rising concerns over domestic fiscal slippage • The US$ index recouped 98.0 levels to end higher against major currencies. Strength in US equities coupled with rising yields is positive for US$. Chinese Yuan has appreciated towards 6.97 levels yesterday amid news that the US and China may work towards reducing tariffs on a proportionate basis. This is mildly positive for EM currencies, including rupee.
Benchmark yield
Domestic benchmark 10-year yields ended higher at 6.52% in the previous session. Domestic GST collections for October were at Rs 95380 crore, down 5.29% on a YoY basis • The US 10-year benchmark yields extended further gains to close at 1.86% in the previous session. Risk sentiments improved supported by overall strength in US equities while a sharper rally in yields could be a signal that the US economy is relatively preforming well.
Currency futures on NSE
The dollar-rupee November contract on the NSE was at 71.04 in the previous session. Open interest increased 7.67% in the previous session • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.