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