ICICI Direct expects USD to find supports at lower levels. Utilise downsides in the pair to go long on the USDINR pair.
ICICI Direct's currency report on USDINR
Government bonds rose, as intensifying geopolitical tensions lifted demand for safe-haven assets like US treasury yields that tested five month lows The benchmark 6.97% 2026 bond yield was unchanged at 6.86% in the previous session Yield on the US 10-year rose to 2.21% from 2.17% in the previous session.
The rupee rose for the first time in three sessions against the US$ due to overnight weakness in the US$ and a late recovery in domestic equities helping sustain gains in the rupee The dollar index recovered from near its supports at 99.60 along with gains in US yields. Major currencies witnessed profit booking from sharp gains seen in the previous session. However, we expect the US$ to remain subdued in the absence of any major reform announcements coupled a with rise in geo-political concerns.US$/INR derivatives strategy
In the currency futures market, the most traded dollar-rupee April contract on the NSE ended at 64.64. The April contract open interest fell 0.67% from the previous day May contract open interest rose 3.74% from the previous day We expect the US$ to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR pair.Intra-day strategy
|US$INR April futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 64.50- 64.60||Market Lot: US$1000|
|Target: 64.85/ 64.95||Stop Loss: 64.50|
|S1/ S2: 64.60 / 64.40||R1/R2:64.80 /65.00|
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