Sell USDINR Feb Fut on rise: ICICIdirect.com

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

The rupee opened firm as sentiment remained supported after the 25 bps cut in repo rate and CRR yesterday. Improvement in global risk sentiment coupled with a rise in the euro further aided the strength in the domestic currency. Gains in domestic stocks further pushed the rupee to a more than three month closing high. The rupee ended at 53.30 dollar, up 0.8% from the previous day’s close of 53.76. The dollar index against six major currencies was at 79.25, down 0.4% from the previous day’s 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 up 24.80% from the previous day. We expect the US dollar to attract selling pressure on rallies against the INR. Utilise the highs in the USDINR February contract to sell.

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