Sell USDINR Mar fut on rise: ICICIdirect.com

ICICIdirect.com has come out with its report on currency. The research firm expects the US dollar to attract selling pressure on rallies against the INR. One can sell USDINR March contract on rise.

The rupee opened firm tracking gains in other Asian peers amid upbeat global market sentiment. Intraday gains in domestic stocks coupled with rise in the euro further supported the currency. However, strong dollar demand in the later trading hours dragged the rupee lower, below the previous session’s closing levels. The rupee ended at 54.92, down 0.10percent from the previous day’s close of 54.86. The dollar index against six major currencies was at 82.07, down 0.1percent from its previous close.

In the currency futures market, the most traded dollar-rupee March contract on the NSE closed at 55.15. The March contract open interest was down 3.4percent from the previous day. The April contract open interest was up 5.6percent from the previous day. We expect the US dollar to attract selling pressure on rallies against the INR. Utilise the highs in the USDINR March contract to sell.

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