ICICI Direct expects USD to find resistance at higher levels. Utilise up sides in the pair to go short on the USDINR pair.
ICICI Direct's currency report on USDINR
Government bonds rose for the first time in three sessions, as low US treasury yields supported emerging - market debt due to attractive yield • The GoI benchmark 6.79% 2027 bond yield fell to 6. 4 7 % from 6.49% in the previous session • Yield on the US 10 - year declined to 2.19% from 2.15% in the previous session.Forex (US$/INR)
The rupee remained in a narrow range as strong gains in domestic equities help offset interest rate hike sentiment in the US$ • The US$ rose against major currencies gauged from a rise in the dollar index. US$ gained sharply against Japanese Yen underpinned by recent Fed interest rate hike while B o J vowed to maintain easy monetary policy. The euro continue to struggle near resistance at the 1.12 area in the backdrop of Brexit negotiations.Strategy
In the currency futures market, the most traded dollar - rupee June contract on the NSE ended at 64.50. The June contract open interest declined 7.15% from the previous day • July contract open interest increased 7.91% in the previous session • We expect the US$ to find resistance at higher levels. Utilise up sides 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 64.58 - 64.68||Market Lot: US$1000|
|Target: 64.30 / 64.20||Stop Loss: 64.78|
|S1/ S2: 64.45 / 64.25||R1/R2:64.70 /64.80|
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