Gold Silver Reports (GSR) – Money Market Heads Up: Rupee Seen Extending Losses Against U.S. Dollar — The rupee is likely to extend losses of the last session as a wave of risk aversion led by Italy’s political crisis impacts most Asian currencies.
Rupee Seen Extending Losses Against U.S. Dollar
The unit had dropped 0.7 percent against the dollar in the previous session to 67.87. The near-term resistance for the pair is at 68.45 a dollar, a level touched on May 23. For today, traders see it in a range of 67.80-68.20 a dollar.
The global risk aversion is also likely to overshadow the positives like a drop in crude oil prices and the timely onset of the monsoon rainfall.
Yield on the 10-year note climbed 2 basis points in last session to 7.76 percent. Further hurting the sentiment is the view that RBI is set to tighten policy as early as next week to keep inflation in check and stem the decline in the rupee. Dealers see the benchmark bond yield moving in a range of 7.72-7.80 percent.
Rupee Opens Lower Against U.S. Dollar
Rupee opened higher at 67.89 per U.S. dollar against yesterday’s close of 67.87.
Indian equity benchmarks staged a gap down start tracking weak global cues as political turmoil in Italy and renewal of trade tensions between U.S. and China gripped financial markets. The S&P BSE Sensex fell 0.5 percent or 174 points to 34,776 and the NSE Nifty 50 index tumbled 0.5 percent or 54 points to 10,578.
Seventeen out of 19 sector gauges were trading lower led by the S&P BSE Bankex index’s 1 percent decline. On the other hand, the S&P BSE Information Technology index was the top gainer, up 0.2 percent. The mid- and small-cap shares were also facing selling pressure as the S&P BSE MidCap index fell 0.3 percent and the S&P BSE SmallCap index declined 0.2 percent.
Nifty Results To Watch
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