ICICIdirect.com has expect the US$ to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the US$INR December contract to Sell target of 68.60 / 68.40.
ICICIdirect.com's report on currency
Government bonds ended higher as yields took a breather but most other sovereign debt fell for a third day after the central bank raised the cash reserve ratio to curb surging liquidity at banks The benchmark 6.97% bond maturing in 2026 ended at | 104.69 against | 104.65 the previous day The benchmark 6.97% 2026 bond yield fell to 6.32% from 6.33% in the previous day
The rupee rose against the dollar as domestic equities gained for a third day, leading concerns about foreign fund outflows to subside. Also, the US$ index continue top consolidate aiding strength in rupee The US$ index rally continue to consolidate post recent surge. Strength in the British pound and euro continued to keep a US$ rally in check while weakness in the Japanese Yen continued due to expectations of rising monetary divergence
US$/INR derivatives strategy: Sell December Contract
In the currency futures market, the most traded dollar-rupee December contract on the NSE ended at 68.83. The December contract open interest fell 1.10% from the previous day
January contract open interest rose 0.85% from the previous day
We expect the US$ to meet supply pressure at higher levels. Utilise upsides in the dollar to go short on the US$INR pair
|US$INR December futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 68.85 - 68.95||Market Lot: US$1000|
|Target: 68.60 / 68.40||Stop Loss: 69.05|
|S1/ S2: 68.65/68.45||R1/R2:69.00/69.20|
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