USDINR opened at 71.07/08 against yesterday closed at 71.04/05 levels. In early trade on Friday rupee headed 10-12 pips south against greenback on Dollar Index trading front foot supported by treasury yield mounting. USDINR getting stiff resistance near 71.40/45 levels, and near term support at 70.95/71.00.
INTRADAY RANGE - 70.68 ( 70.86 - 71.19 ) 71.38
On Thursday Indian rupee has broken the four days losing streak, after liquidity infusion by central banks through open market operation. Central bank eased overseas borrowing rules for companies, which also helped rupee to recover from the lower levels. Indian rupee reversed by 10 pips to close at 71.04/5 against the greenback. The local unit moved in a range of 70.9675 to 71.4075, before finally ending at 71.04/05, showing a gain of 10 pips.
The dollar was firm against the yen on Friday as growing optimism on progress in Sino-US trade talks supported broader appetite for risk. A Wall Street Journal report on Thursday that US Treasury Secretary Steven Mnuchin had considered easing tariff imposed on Chinese imports lifted sentiment though a Treasury spokesman later denied the report. The reaction of the market to the report shows the overall optimistic view (is) spreading out across the foreign exchange market.
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