ICICI Direct expects USDINR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
The rupee posted its biggest single - session rise in more than two weeks against the US$ on Monday, tracking gains in domestic equities amid low volumes in a holiday - truncated week • The US$ fell against major currencies as a reversal in major weighed on dollar . GBP gained over rising UK core inflation raising expectations of earlier - than - expected interest rate hike . Recovery in global equities led profit booking in US$ ahead of US inflation data . JPY is on course to test six - months highs near 107 . 30 . However, higher US inflation data may see a sharp reversal in the US$.Benchmark yield
Sovereign bonds fell on Monday on a fresh supply of state government debt and amid rising US Treasury yields • US 10 - year yields declined to 2 . 83 % from 2 . 86 % amid a recovery in equities ahead of US inflation data.Currency futures on NSE
The near month dollar - rupee February contract on the NSE was at 64 . 43 . The February contract open interest declined 0 . 47 % from the previous day • We expect the US$ INR to meet supply pressure at higher levels . Utilise upsides in the pair to initiate short positions.
|US$INR Feb futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 64.35 - 64.41||Market Lot: US$1000|
|Target: 64.20 / 64.14||Stop Loss: 64.53|
|S 1/ S 2: 64.32 / 64.24||R 1/R 2:64.50 /64.60|
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