ICICI Direct expects USD 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
Government bonds ended lower, tracking an overnight recovery in global yields ahead of the central bank’s April meeting minutes The benchmark 6.97 % 2026 bond yield rose to 6. 88 % from 6.86% in the previous session Yield on the US 10 - year rose to 2. 23 % from 2. 21 % in the previous session.Forex (US$/INR)
The rupee trimmed intraday losses to end with minor gains, as strong domestic equities helped the currency tide over the global uncertainty ahead of the French presidential polls this weekend. Central bank minutes showed risks remain to inflation on the upper side The dollar index ended almost at the same levels as gains over JPY were offset by losses against GBP. US$ also got a boost as Treasury Secretary Steve Munchkin talked about unveiling a tax reform plan very soon. We expect the forex market to remain on an edge ahead of French presidential polls over the weekend.US$/INR derivatives strategy
In the currency futures market, the most traded dollar - rupee April contract on the NSE ended at 64.60 .The April contract open interest fell 3.54 % from the previous day May contract open interest rose 0.84 % from the previous day We expect the US $ to meet supply pressure at higher levels . Utilise up sides in the pair to go short on the US$INR pair.
|US$INR April futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 64.65- 64.75||Market Lot: US$1000|
|Target: 64.40/ 64.30||Stop Loss: 64.85|
|S1/ S2: 64.55 / 64.35||R1/R2:64.80 /65.00|
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