Jul 14, 2017 11:43 AM IST | Source:

Sell USDINR; target of 64.30 - 64.20: ICICI Direct

ICICI Direct expects US dollar to meet supply pressure at higher levels. Utilise up sides in the pair to go short on the USDINR pair.

ICICI Direct's currency report on USDINR

Debt market

Government bonds  ended higher for a second day, after record - low  retail inflation in June increased expectations of an interest rate cut in the  August  monetary policy review meeting • The  GoI  benchmark  6.79 % 2027 bond  yield was steady at 6. 4 6 % from the previous session • Yield on the US 10 - year rose to 2.3 4 % from 2.3 2 % in the previous session.

Forex (US$/INR)

The rupee rose to a more - than - three - week high against the US$, after  the  US Federal Reserve Chair Janet Yellen’s comments  signalleda  gradual pace of rate increase while domestic June  retail inflation fell to  1.54% • The US$  traded  on  a  mixed note  against major currencies ahead of US  June  CPI data and central bank meeting lined up  next week. Dollar remain under pressure post US Fed chief Janet Yellen’s two - day testimony. Fed’s concerns on inflation growth raised the risk for US interest rate hike outlook.

In the currency futures market, the most traded dollar - rupee July contract on the NSE ended at 64.55. The July contract open interest increased 2.92 % from the previous day • August contract open interest increased 26.66 % in the  previous session • We expect  the US dollar to meet supply pressure at higher levels. Utilise up sides in the pair to go short on the US$INR pair.

Intra-day strategy

US$INR July futures contract (NSE)View: Bearish on US$INR
Sell US$INR in the range of 64.53 - 64.63Market Lot: US$1000
Target: 64.30 / 64.20Stop Loss: 64.73
S1/ S2: 64.40 / 64.30
R1/R2:64.65 /64.75

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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