ICICI Direct expects USD to meet supply pressure at higher levels. Utilise up side in the pair to go short on the USDINR.
ICICI Direct's currency report on USDINR
Government bonds tumbled, with the benchmark yield posting its biggest weekly gain in nearly seven months, as rising crude oil prices stoked inflation concerns. The GoI benchmark 6.79 % 2027 bond yield rose to 6.96 % from 6.93 % in the previous session • Yield on the US 10 - year benchmark bond yield rose to 2.40 % from 2.34 % in the previous session.Forex (US$/INR)
The rupee posted its biggest weekly decline against the US$ since September, as global crude oil prices hovered near multi - year highs, denting appetite for domestic assets. • The US$ fell mildly against major currencies over rising pessimism on US tax reform. US$ fell even as treasury yields rose sharply. Euro posted mild gains as pair continues to trade above crucial support zone while British Pound fell over rising political concerns for Prime minister May. US Tax details and geo political events to determine moves in Fx markets in absence of any major event for the month.Strategy
In the currency futures market, the near month dollar - rupee November contract on the NSE ended at 65.32. The November contract open interest increased 5.92 % from the previous day • December contract open interest rose 5.64 % in the previous session • We expect the US$ to meet supply pressure at higher levels . Utilise up side in the pair to go short on the US$INR.
|US$INR November futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 65.35 - 65.45||Market Lot: US$1000|
|Target: 65.10 / 65.05||Stop Loss: 65.55|
|S 1/ S 2: 65.20 / 65.10||R 1/R 2:65.35 /65.45|
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