Sell US$INR; target of 64.20: ICICI Direct
ICICI Direct expects US$ to meet resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair.
ICICI Direct's currency report on USDINRDebt market
Government bonds ended little changed, as domestic equity indices continued to consolidate, amid political concerns in the US The benchmark 6.97% 2026 bond yield rose mildly to 6.68% from 6.67% in the previous session Yield on the US 10-year fell over 10-bps to 2.22% from 2.33% in the previous sessionForex (US$/INR)
The rupee edged lower against the US$, as state-run banks stepped up dollar purchases, erasing gains from broad US$ weakness caused by soft housing data and political turmoil in the US The US dollar declined sharply due to rising political concerns around the US President’s alleged sharing of information with a Russian minister. The US$JPY pair fell sharply over 2% on strong safe haven buying while reflation trades took a hit as market participants viewed the economic agenda while taking a backseat over the recent turn of events
In the currency futures market, the most traded dollar-rupee May contract on the NSE ended at 64.25. The May contract open interest declined 4.89% from the previous day June contract open interest increased by 4.70% in the last session We expect the US$ to meet resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pairIntra-day strategy
|US$INR May futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 64.60 - 64.70||Market Lot: US$1000|
|Target: 64.30/ 64.20||Stop Loss: 64.80|
|S1/ S2: 64.40 / 64.20||R1/R2:64.60 /64.80|
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