The dollar is on a down-trend. Shreekant Jha, managing director of PJ Commodity Ventures joins CNBC-TV18 to tell investors about what to do with currency futures.
The dollar is weakening against the euro, so the stretegy would be to sell the dollar-rupee at 45.50 and watch the euro, he says. Below is the verbatim transcript. Also watch the accompanying video Q: How do trade the rupee, a distinct weakness for the dollar-rupee?
A: If you look at the dollar, it is anyway a downtrend. So what we are seeing is a correction of that downtrend. Euro is getting stronger versus the dollar. Hence, selling the dollar-rupee now is actually good idea, because we should be getting the downside now. Q: Any levels that you are looking at in the currency futures market?
A: Basically, the numbers still remain the same. We were looking at 45.50 being the place you should be selling. 44.90 is another support on the downside. Also read: Rupee up on euro's gains against dollar Q: What would be a good strategy for euro-rupee then, because we have seen quite a bit of volatility in dollar-euro over last 3 or 4 days?
A: Yes, you will probably see a shift now. Whoever was in a short-term being long on the dollar will probably be looking at the euro now. 65.50 is where we would like to buy it and, we think, we will probably be seeing around 67. It was a sideways trend for a while and you will see it trading on the upside. The trend is a little bullish for the euro now. Q: Now that we have you, any view on how crude may be traded in the domestic market?
A: At Rs 3900 per barrel levels sometime ago, crude actually started showing signs of getting bullish. It went up to around Rs 5000 per barrel and has now corrected and come back. We are looking at Rs 4800 per barrel levels for crude to break and show signs of going up. Q: What could be a good commodity in terms of volatility? Is there still a trade in silver, in gold? A: When silver went up to Rs 17,000, it was a good shot at that time. Getting in was of course difficult considering the volatility. With gold, at Rs 22600, it started getting weak. If you are short over there, you should be making some money there as well. Silver, I don
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