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 buy USDINR February Future on decline.
The rupee opened lower amid strong dollar demand by oil importers. While a lower than expected WPI inflation reading coupled with some custodian inflows provided support to the rupee, the upside was largely capped amid losses in domestic stocks. Global growth concerns coupled with a weak euro further dragged the currency lower in later trading hours. The rupee ended at 53.92, up 0.2percent from the previous day’s close of 53.82. The dollar index against six major currencies was at 80.40, up 0.40percent from its previous close.
In the currency futures market, the most traded dollar-rupee February contract on the NSE closed at 54.00. The February contract open interest was down 6.20percent from the previous day. The March contract open interest was up 1.8percent from the previous day. We expect the US dollar to garner buying support on declines against the INR. Utilise the lows in the USDINR February contract to buy.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click on the attachment
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