Sell USDINR Feb Fut on rally: ICICIdirect.com

ICICIdirect.com has come out with its report on currency. The research firm expects the US dollar to face selling pressure on rallies against the INR. One can utilise the highs in the USDINR February contract to sell.

The rupee opened firm tracking gains in the euro. However, it came under some pressure intraday amid dollar demand from oil & gold importers. Worsening in India’s January trade balance, coming at USD20 billion, the second highest reading ever, also weighed on the currency. However, gains in domestic stocks coupled with custodian inflows helped the rupee strengthen to rise above the previous day’s close. The rupee ended at 53.82, up 0.1% from the previous day’s close of 53.85. The dollar index against six major currencies was at 80.07, up 0.10% from its previous close.

In the currency futures market, the most traded dollar-rupee February contract on the NSE closed at 53.90. The February contract open interest was up 3.60% from the previous day. The March contract open interest was up 2.0% from the previous day. We expect the US dollar to face selling pressure on rallies against the INR. Utilise the highs in the USDINR February contract to sell.

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