ICICI Direct's currency report on USDINR
US dollar declined 0.40% on Friday after US Federal Reserve Chairman Jerome Powell at the Jackson Hole meeting indicated the central bank may start tapering its bond buying programme by year end but will continue to hold interest rates at current level • Rupee future maturing on September 28 appreciated by 0.76% on Friday’s trading session on positive domestic markets. Further, traders remained cautious ahead of US Fed Chair Powell’s speech • The rupee is likely to continue its strength amid weakness in dollar, FII inflows and rise in risk appetite in the global markets. Market sentiments improved as the US Federal Reserve failed to offer exact timing of tapering beyond saying it could be this year. However, concerns over an uptick in daily Covid-19 cases in India and surge in crude oil prices may hurt the rupee. US$INR (September) is likely to trade at 73.50-73.90.
|US$INR September futures contract (NSE)||View: Bullish on US$INR|
|Buy EURINR in the range of 86.82-86.85||Market Lot: US$1000|
|Target: 87.15||Stop Loss: 86.70|
|Support: 86.70/86.60||Resistance: 87.15/87.30|