ICICI Direct expects USD to find support at lower levels. Utilise the down side in the pair to go long on the USDINR,
ICICI Direct's currency report on USDINR
Government bonds tumbled, with the benchmark yield at a more - than - 18 - month high, tracking overnight gains in the US, treasury yields and higher global crude oil prices• The GoI benchmark 6.79 % 2027 bond yield declined to 7. 26 % from 7.37 % in the previous session • Yield on the US 10 - year benchmark bond rose to 2.56 % from 2.55 % in the previous session.
The rupee snapped a two - day losing streak, as the US$ tripped against major currencies helping the rupee offset losses on the back of oil - related and fiscal slippage concerns • The US$ lost some of its gains made in the previous session as a recovery in the Euro and sustained gains in JPY weighed on the US$. JGB yields have spiked to 0.09% as reports showed BoJ has reduced some of its bond buying quantum, which markets have induced as an initiation of QE tapering.
In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63.74 . The January contract open interest declined 5.45 % from the previous day • February contract US$INR ended at 6 3.94. Open interest increased 8.70 % in the previous session • We expect the US$ to find support at lower levels. Utilise the down side in the pair to go long on the US$INR.
|US$INR January futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 63.64 - 63.70||Market Lot: US$1000|
|Target: 63.90 / 63.95||Stop Loss: 63.53|
|S1/ S2: 63.55 / 63.45||R1/R2:63.85 /63.95|
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