USD may attract selling pressure against INR: ICICIdirect

Forex (US$/INR): INR strengthens
• The Indian rupee weakened on Monday as oil importers stepped in to buy US dollars while waning greenback sales by corporates and exporters also hurt sentiments
• The INR ended at 55.65/66 per dollar, down from the previous day’s close of 55.54/55
• The dollar index against six major currencies was at 82.5, down by 0.4% from the previous day’s close

Derivatives strategy: Sell June contract
• In the currency futures market, the most traded near-month dollar-rupee contract on the NSE closed at 55.7. The US$/INR June open interest was up by 4.0% from the previous day
• The July contract open interest was up 18.4% from the previous day
• We expect the US dollar to attract some selling on rallies against the INR. Utilise the highs in the US$/INR June contract to sell

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