Sell USDINR; target of 63.90 - 63.80: ICICI Direct
ICICI Direct expects USD to meet resistance at higher levels. Utilise up side in the pair to go short on the USDINR.
ICICI Direct's currency report on USDINRDebt market
Government bon ds ended little changed, as investors deferred purchases amid concerns that August’s retail inflation rate will likely accelerate, dentin g hopes of a near - term rate cut • The GoI benchmark 6.79 % 2027 bond yield declined to 6.5 5 % from 6.56 % in the previous session • Yield on the US 10 - year yield increased to 2.17 % from 2.13 % in the previous session.Forex (US$/INR)
The rupee fell for a second day against the US$, tracking an overnight strength in the US currency amid easing geopolitical tensions while Hurricane Irma turned out to be less catastrophic than feared. Domestic August retail inflation rose to 3.36% while July IIP growth was at 1.2% against expectation of 1.6% • The US$ remained almost unchanged as gains over Japanese Yen were offset by losses against British Pound and Euro. GBP rose sharply following uptick in August CPI data. It has put focus on upcoming B o E’s monetary policy while JPY fell as risk - on sentiment recovered. CHF and JPY fell while Euro rose on the back of recovery in risk on sent.Strategy In the currency futures market, the most traded dollar - rupee September contract on the NSE ended at 64.16. The September contract open interest declined 4.43 % from the previous day • October contract open interest increased 6.28 % in the previous session • We expect the US$ to meet resistance at higher levels. Utilise up side in the pair to go short on the US$INR.
|US$INR September futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 64.12 - 64.22||Market Lot: US$1000|
|Target: 63.90 / 63.80||Stop Loss: 64.32|
|S1/ S2: 63.95 / 63.85||R1/R2:64.15 /64.25|