Buy Indian Rupee April Fut on decline: ICICIdirect.com

ICICIdirect.com has come out with its report on currency. The research firm expects the US dollar to garner buying support on declines against the INR. One can utilise the lows in the USDINR April contract to buy.

The rupee opened marginally higher on Thursday supported by the recent fall in global crude oil prices. Intraday recovery in the euro coupled with capital inflows also aided the currency. The rupee also gained as data showed that India’s trade deficit narrowed to USUSD10.3 billion in March with exports rising for the third consecutive month and imports declining for the first time since August 2012. The rupee ended at 53.96, up 0.5percent from the previous day’s close of 54.21.  The dollar index against six major currencies was at 82.75, up 0.20percent from its previous close.

In the currency futures market, the most traded dollar-rupee April contract on the NSE closed at 54.00. The April contract open interest was up 3.60percent from the previous day.  The May contract open interest was up 17.0percent from the previous day.  We expect the US dollar to garner buying support on declines against the INR. Utilise the lows in the USDINR April contract to buy.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More