ICICI Direct expects USD to find supports at lower levels. Utilise down sides in the pair to go long on the USDINR pair.
ICICI Direct's currency report on USDINR
Government bonds fell for the first time in three days, as investors booked profit from recent gains, after a Federal Reserve rate hike on expected lines • The GoI benchmark 6.79 % 2027 bond yield rose to 6.48% from 6.47% in the previous session • Yield on the US 10 - year rose to 2.16% from 2.13% in previous sessionForex (US$/INR)
The rupee ended sharply lower, unable to sustain opening gains. Weak equities and a hawkish Fed stance weighed on the rupee. BoE also saw rising dissent towards an interest rate increase, raising concerns on future inflows in emerging markets • The US$ recovered against major currencies on the back of hawkish US interest rate outlook amid a 25 - bps interest rate hike. US$JPY pair gained sharply while rising on increasing monetary policy deviation ahead of BoJ’s monetary meeting today. BoE kept its key interest rates unchanged while three MPC members voted for an imminent rate hike resulting in the pound gaining sharplyStrategy
In the currency futures market, the most traded dollar - rupee June contract on the NSE ended at 64.62. The June contract open interest declined 16.77 % from the previous day • July contract open interest declined 0.11% in the previous session • We expect the US$ to find supports at lower levels. Utilise down sides in the pair to go long on the US$INR pair.
|US$INR June futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 64.45 - 64.55||Market Lot: US$1000|
|Target: 64.75 / 64.85||Stop Loss: 64.35|
|S1/ S2: 64.50 / 64.40||R1/R2:64.70 /64.80|
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