According to ICICI Direct expect the USD to find support at lower levels. Utilise the down side in the pair to go long on the USDINR
ICICI Direct's currency report on USDINRDebt market
Government bonds reversed losses post RBI’s monetary policy. The central bank made a small tweak to its inflation forecast while the policy turned out to be less hawkish than expected supporting domestic debt The G o I benchmark 6.79%202 7 bond yield declined 3 bps to 7.03% from 7.06%in the previous session Yield on the US10 - year benchmark bond declined to 2.3 4 % from 2.3 5 % amid the US President ’s tax cuts plan.
The rupee ended at a near - two - week low against the USD, as equities extended losses that raised capital outflow concerns, after the Monetary Policy Committee kept interest rates on hold The dollar index continued its gains ahead of US employment data as well as Fed meeting next week. The euro came under profit booking while the Japanese Yen posted mild gains. The US President has officially recognised Jerusalem as Israel’s capital, which risks escalation of geo political concerns , especially in the Arab world and Middle East
In the currency futures market, the near month dollar - rupee December contract on the NSE was unchanged at 64. 65. The December contract open interest declined 10.77 % from the previous day January contract USDINR ended at 64. 88. Open interest increased 0.19 % in the previous session We expect the USD to find support at lower levels . Utilise the down side in the pair to go long on the USDINRIntra-day strategy
|USDINR December futures contract (NSE)||View: Bullish on USDINR|
|Buy USDINR in the range of 64.50 - 64.60||Market Lot: USD1000|
|Target: 64.85 / 64.95||Stop Loss: 64.40|
|S1/ S2: 64.55 / 64.35||R1/R2:64.75 /64.90|
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