Sell USDINR; target of 68.00 - 67.94: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency   
The rupee ended with sharp losses of almost 0 . 44 % amid lingering global trade concerns as well as emerging risks of lower than anticipated increase in oil supply • The US $ continued its weakness even as GBP and Euro gained while reports that US restrictions on foreign investments will not be as sweeping as anticipated supported majors . US $ is expected to remain in consolidation mode ahead of US June employment data even as investors demand more details over further trade actions.

Benchmark yield  
Sovereign bonds were almost unchanged as investors continue to track steady crude oil prices as well as a recent cool - off in global yields • US 10 - year yields fell mildly to 2 . 88 % as trade war worries between the US and China remain in focus . Investors await US June employment details in the backdrop of a hawkish Federal Reserve.

Currency futures on NSE
Near - month dollar - rupee June contract on the NSE was at 68 . 13 in the previous session . June contract open interest declined 0 . 18 % in the previous day • We expect the US$INR to meet supply pressure at higher levels . Utilise upsides in the pair to initiate short positions.Intra-day strategy

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