ICICI Direct expects USD to meet supply pressure at higher levels. Utilise up sides to go short on the USDINR pair.
ICICI Direct's currency report on USDINR
Government bonds fell as a rise in domestic yields on the back of geo - political risk escalation along with expectations of a rise in domestic inflation weighed on debt • The GoI benchmark 6.79 % 2027 bond yield rose to 6. 47% in the previous session • Yield on the US 10 - year fell to 2.2 5 % from 2. 26 % in the previous session.Forex (US$/INR)
The rupee weakened sharply against US$ on the back of profit booking in domestic equities along with escalation in geo - political risk weighing on emerging currencies, including rupee • US$ fell against major currencies as gains over Euro were weighed by losses against Japanese Yen and British Pound. Rise in geo - political risks led to a spike in Japanese Yen, which could see short closure in Japanese Yen. Forex markets remain on the edge amid geo - political risks and US political concerns around the President.Strategy
In the currency futures market, the most traded dollar - rupee August contract on the NSE ended at 63.99. The August contract open interest declined 7.70 % from the previous day • September contract open interest increased 1.57 % in the previous session • We expect the US$ to meet supply pressure at higher levels. Utilise up sides to go short on the US$INR pair.
|US$INR August futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 64.00-64.10||Market Lot: US$1000|
|Target: 63.85 / 63.75||Stop Loss: 64.20|
|S1/ S2: 63.90 / 63.80||R1/R2:64.00 /64.20|
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