ICICI Direct expects USD to find supports at lower levels. Utilise downside in pair to go long on USDINR.
ICICI Direct's currency report on USDINR
Government bonds ended lower for a fourth day, as fresh supply from an open market sale of debt and today’s weekly auction weighed on investor sentiment • The GoI benchmark 6.79 % 2027 bond yield rose to 6.49 % in the previous session • Yield on the US 10 - year fell to 2.2 0 % from 2. 25 % in the previous session.Forex (US$/INR)
The rupee fell to its lowest in over a week against the US$ , in line with its Asian peers , as shares continued to slide on risk aversion triggered by growing tensions between North Korea and the US • US$ ell against major currencies as rising risk - off sentiment on account of North Korea - US geopolitical escalation weighed on US$. Japanese Yen continue to rise sharply supported by safe haven buying while British pound was weighed by lower than expected economic data.Strategy
In the currency futures market, the most traded dollar - rupee August contract on the NSE ended at 64.22. The August contract open interest declined 14.16 % from the previous day • September contract open interest increased 4.43 % in the previous session • We expect the US$ to find supports at lower levels. Utilise downside in pair to go long on US$INR.
|US$INR August futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 64.10 -64.20||Market Lot: US$1000|
|Target: 64.40 / 64.50||Stop Loss: 64.00|
|S1/ S2: 64.20 / 64.00||R1/R2:64.35 /64.55|
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