Last Updated : Mar 01, 2018 11:02 AM IST | Source:

Buy USDINR; target of 65.60 - 65.68: ICICI Direct

ICICI Direct expects US$INR to find supports at lower levels. Utilise down sides in the pair to initiate long positions.

ICICI Direct's currency report on USDINR

Spot Currency

The rupee posted its first monthly decline in five - months against the US$ , tracking a corresponding rise in the dollar index amid bets of a faster pace of rate increases from the US Federal Reserve • The US $ extended gains against major currencies except JPY as the Fed chair’s hawkish rhetoric continue to weigh on risk - on sentiment . Dollar index is near five - week high as 90. 70 levels. JPY rose against US$ as capital flows in Japan continued to help yen sustain gains. British Pound skidded against US$ as well as Euro as tensions of hard Brexit surfaced following exit draft prepared by European Commission.

Benchmark yield

Sovereign bonds fell for a seventh consecutive month in February, as fiscal deficit and inflationary woes triggered fears of rate hikes going ahead, while global markets turned volatile • US 10 - year yields declined but could remain at elevated level amid recent hawkish rhetoric from Fed chair’s first congressional testimony.

Currency futures on NSE The near month dollar - rupee March contract on the NSE was at 65.32. The March contract open interest increased 17.58 % from the previous day • We expect the US$INR to find supports at lower levels. Utilise down sides in the pair to initiate long positions.

Intra-day strategy

US$INR March futures contract (NSE) View: Bullish on US$INR
Buy US$INR in the range of 65.30 - 65.36 Market Lot: US$1000
Target: 65.60 / 65.68 Stop Loss: 65.18
Support Resistance
S 1/ S 2: 65.40 / 65.30 R 1/R 2:65.65 /65.75
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First Published on Mar 1, 2018 11:02 am
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