Buy USDINR Feb Fut on decline: ICICIdirect.com

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

The rupee opened stronger below 53 levels tracking positive cues from other Asian peers. It strengthened further, appreciating to a four month high of 52.90 on expectations of strong capital flows ahead of the NTPC stake sale due today. However, the currency reversed gains in later trade tracking losses in the euro as risk sentiment weakened. The rupee ended at 53.16 dollar, down 0.03% from the previous day’s close of 53.14. The dollar index against six major currencies was at 79.72, up 0.30% from its previous close.

In the currency futures market, the most traded dollar-rupee February contract on the NSE closed at 53.37. The February contract open interest was down 0.1% from the previous day. The March contract open interest was up 2.3% from the previous day. We expect the US dollar to attract buying support on declines against the INR. Utilise the lows in the USDINR February contract to buy.

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