Buy USDINR Mar Fut on decline: ICICIdirect.com

ICICIdirect.com has come out with its report on currency. The research firm expects the US dollar to garner buying support on declines against the INR. One can utilise the lows in the USDINR March contract to buy.

The rupee opened sharply weaker, at around a two-month low as global risk sentiment remained subdued in early trade. Intraday losses in domestic stocks coupled with a decline in the euro further weighed on the rupee. While dollar sales by exporters and foreign banks provided some support to the currency, the upside was largely capped owing to dollar demand by oil importers.

The rupee ended at 54.86, up 0.10percent from the previous day’s close of 54.90. The dollar index against six major currencies was at 82.15, down 0.1percent from its previous close.  In the currency futures market, the most traded dollar-rupee March contract on the NSE closed at 55.17. The March contract open interest was down 3.4percent from the previous day. The April contract open interest was up 1percent from the previous day. We expect the US dollar to garner buying support on declines against the INR. Utilise the lows in the USDINR March contract to buy.

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To read the full report click on the attachment 

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