Jun 19, 2017 11:16 AM IST | Source:

Sell USDINR; target of 64.30 - 64.20: ICICI Direct

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

ICICI Direct's currency report on USDINR

Debt market

Government bonds fell for a second day, as investors sold debt to benefit from price gains early last week • The GoI benchmark 6. 79 % 2027 bond yield rose to 6. 49% from 6. 48% in the previous session • Yield on the US 10 - y ear declined to 2.15 % from 2.16% in previous session.

Forex (US$/INR)

The rupee posted its first weekly loss in four weeks against  the  US$ ,  as expectation of a third interest rate increase in the US this year remained  firm after  the  just concluded Fed Monetary meeting • The US$  fell against major currencies as dollar gains over Japanese Yen  were more than offset by losses in  the  British  pound and Euro. JPY fell  sharply  against most majors as  the  B o J maintained its easy  monetary  policy leading  to  further widenig policy divergence between B o J and  other major  central banks.

In the currency futures market, the most traded dollar - rupee June contract on the NSE ended at 64.52. The  June contract open interest  declined 1 3.45 % from the previous day • July contract open interest  increased 2.60 % in the  previous session • We expect  the US$ to find resistance at higher levels. Utilise upsides in the pair to go short on the US$INR pair.

Intra-day strategy

US$INR June futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 64.55 - 64.65Market Lot: US$1000
Target: 64.30 / 64.20Stop Loss: 64.75
S1/ S2: 64.45 / 64.25R1/R2:64.70 /64.80

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.

Follow us on
Available On