USD may attract buying support against INR: ICICIdirect

Forex (US$/INR): INR weakens
• The Indian rupee dropped on Tuesday as strong dollar demand from oil firms to meet month-end import commitments and a pullback in domestic shares from the day’s high weighed heavily
• The INR ended at 55.67/68 per dollar, down from the previous day’s close of 55.18/19
• The dollar index against six major currencies was at 82.5, up by 0.4% from the previous day’s close

Derivatives strategy: Buy June contract
• In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 56.01. The US$/INR June open interest was up by 30.9% from the previous day
• We expect the US dollar to attract some buying support on declines against the INR. Utilise the lows in the US$/INR June contract to buy

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