Sep 14, 2017 11:04 AM IST | Source:

Sell USDINR; target of 63.98 - 63.88: ICICI Direct

ICICI Direct expects USD to meet resistance at higher levels. Utilise upside in the pair to go short on the USDINR.

ICICI Direct's currency report on USDINR

Debt market  

Government bonds fell, as investors sold notes amid concerns the central bank may not cut interest rate s immediately after retail inflation accelerated to a five-month high in August • The GoI benchmark 6.79% 2027 bond yield increased to 6.59% from 6.55% in the previous session • Yield on the US 10-year yield increased to 2.19% from 2.17% in the previous session.

Forex (US$/INR)  

The rupee rose for the first time in three sessions against the dollar, as  the dollar’s rally lost traction overnight amid caution ahead of US  inflation data  • The US$ gained sharply against major currencies amid short covering  ahead of US August inflation data. Risk as well as safe haven currencies fell against US$ amid subsiding risk-off sentiment and lower-than- expected damage from Hurricane Irma. An uptick in US August retail inflation would further provide supports to the US$ as the recent deluge had seen huge short build up in the dollar index.

In the currency futures market, the most traded dollar-rupee September contract on the NSE ended at 64.09. The September contract open interest declined 5.78% from the previous day • October contract open interest increased 5.70% in the previous session • We expect the US$ to meet resistance at higher levels. Utilise upside in the pair to go short on the US$INR.

Intra-day strategy

US$INR September futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 64.18-64.28Market Lot: US$1000
Target: 63.98 / 63.88Stop Loss: 64.38
S1/ S2: 64.05 / 63.95R1/R2:64.20 /64.30

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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