Forex market: The Indian rupee has opened 9 paise against the US dollar on 20 February due to softening in the dollar index. The Indian rupee is open at 86.8525 against the US dollar. While the rupee closed at 86.9487 yesterday against the dollar. The dollar index tracking the US dollar price against 6 big currency in the world reached 107.050 in early trade today, while it was at 107.173 in the previous trading session.
The MUFG Global Market Research Report states that the US dollar (DXY) has received support in the near period after President Donald Trump’s latest threats to impose 25 per cent tariff on auto, pharmaceuticals and semiconductors. It can be implemented in early 2 April after the ongoing American review of its trade relations with business partners.
In Wednesday’s session, DXY rose 0.1% to 107.20 levels, yesterday it continued for the second day. Meanwhile, the US Treasury Bond Yield has not changed much. The report said that the US 10-year-old yield still remains above 4.50 per cent.
Amit Pabari, managing director of CR Forex Advisors, said that USD/INR pair is expected to do business within a radius of 86.60-87.20. The level of 87.20 is emerging as a strong resistance, while 86.50 is acting as an important support zone. Going below 86.50 may open the way for the level of 85.80-86.00.
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The RBI bulletin released on February 19 shows that the central bank has sold $ 15.15 billion in the spot foreign exchange market in December. In this bulletin, RBI has said that during this period it bought $ 53.89 billion and sold $ 69.05 billion. In November, the central bank made a net sale of $ 20.23 billion in the spot market.
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