ICICI Direct expects US$ to meet supply pressure at higher levels . Utilise up side in the pair to go short on the US$INR.
ICICI Direct's currency report on USDINR
Government bon ds rose for the first time in five sessions, as some investors bought notes to benefit from the recent decline in prices, amid possibility of short covering • The GoI benchmark 6.79 % 2027 bond yield declined to 6.74% from 6.78% in the previous session • Yield on the US 10 - year yield was steady at 2.36 % in the previous session.Forex (US$/INR)
The rupee rose for a second straight session in line with most other Asian currencies, as gains in major currencies weighed on US$. Receding fears of slipping fiscal deficit could trigger rupee appreciation • The US$ posted losses against major currencies as Euro and British pound continue to post decent gains. Euro gained over receding fears of Catalonia region independence referendum while a recent uptick seen in UK labour costs and inflation is positive for British pound. Traders expect BoE to move earlier than expected to raise interest rates. Euro may remain in focus ahead of ECB monetary meeting this month.Strategy
In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.43. The October contract open interest declined 9.66 % from the previous day • November contract open interest increased 10.39 % 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 October futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 65.50 -65.60||Market Lot: US$1000|
|Target: 65.30 / 65.20||Stop Loss: 65.70|
|S1/ S2: 65.40 / 65.20||R1/R2:65.55 /65.75|
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