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 little changed after the Indian Meteorological Department (IMD) predicted southwest monsoon rainfall would be normal this year The benchmark 6.97 % 202 6 bond yield rose to 6. 8 6 % from 6. 8 5 % in the previous session Yield on the US 10 - y ear fell sharply to 2.17 % from 2.25% in the previous session
The rupee fell for a second day against the dollar in range bound trading, dragged by weak domestic equities and US$ purchases by state - run banks for their importer clients The dollar index fell sharply against major currencies as sharp gains in the GBP and euro weighed on the US$. The GBP gained almost 2.20% as the UK Prime Minister has called for snap general elections in June .The euro also gained tracking political development s in France. We expect the US$ to remain subdued as US interest rate hike prospects could take a backseat amid a host of geo - political uncertainties.US$ 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 6. 6 5 % from the previous day May contract open interest rose 3.59 % 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 64.80 - 64.90||Market Lot: US$1000|
|Target: 64.65/ 64.55||Stop Loss: 65.00|
|S1/ S2: 64.60 / 64.40||R1/R2:64.80 /65.00|
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