Sell USDINR; target of 63.98 - 63.88: ICICI Direct
ICICI Direct expects USD to meet resistance at higher levels. Utilise upside in the pair to go short on the USDINR.
ICICI Direct's currency report on USDINRDebt market
Government bonds were little changed, as an open market sale of bonds increased supply, even as investors remained cautious after August retail inflation accelerated to a five-month high • The GoI benchmark 6.79% 2027 bond yield was steady at 6.59% in the previous session • Yield on the US 10-year yield declined to 2.18% from 2.19% in the previous session.Forex (US$/INR)
The rupee fell to a more-than-one-week low against the US$, tracking overnight gains due to uptick in US treasury yields and strong producer price data • The US$ fell against major currencies as sharp gains in the British Pound and safe haven demand for JPY weighed on the US$. BoE in its September monetary meeting hinted at earlier-than-expected rise in interest rates. Recent uptick in UK inflation data is positive for British Pound. US August CPI was higher at 1.9% beating estimates of 1.8%.Strategy In the currency futures market, the most traded dollar-rupee September contract on the NSE ended at 64.22. The September contract open interest declined 9.98% from the previous day • October contract open interest increased 3.53% in the previous session • We expect the US$ to meet resistance at higher levels. Utilise upside 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 64.20 - 64.30||Market Lot: US$1000|
|Target: 63.98 / 63.88||Stop Loss: 64.40|
|S1/ S2: 64.10 / 64.00||R1/R2:64.25 /64.35|