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Last Updated : Mar 22, 2017 10:57 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 65.60 - 65.70: ICICI Direct

ICICI Direct expects US dollar to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR.

ICICI Direct's currency report on USDINR

Debt market  

Government bonds ended higher for the first time in four sessions, as a  decline in US treasury yields due to the Fed’s gradual rate hike stance  aided by debt buying  • The benchmark 6.97% 2026 bond yield was unchanged at 6.89% on the  previous day  • Yield on US 10-year further fell to 2. 42% from 2.46% in the previous day

Forex (US$/INR)  

The rupee rose for a second day against the dollar, a sixth day of gain in  seven sessions, as foreign banks and exporters continue to sell amid  weakness in the US$. However, sharp gains in the rupee could be halted  if domestic equities see profit booking  • The US dollar fell sharply against major currencies as US equities see  highest profit booking since US presidential election results. The pound Sterling saw huge gains due to US$ weakness and UK Prime Minister’s decision to trigger Article 50 by March end. We expect US$ to remain under pressure as rate hike sentiment is already priced in

US$/INR derivatives strategyIn the currency futures market, the most traded dollar-rupee March contract on the NSE ended at 65.31.  The March contract open interest rose 3.98% from the previous day • April contract open interest rose 17.52% from the previous day • We expect the US dollar to find supports at lower levels. Utilise downsides in the pair to go long on the US$INR pair.

Intra-day strategy

Close

US$INR March futures contract (NSE)View: Bullish on US$INR
Buy US$INR in the range of 65.25 - 65.35Market Lot: US$1000
Target: 65.60 / 65.70Stop Loss: 65.15
SupportResistance
S1/ S2: 65.40 / 65.30R1/R2:65.70 /65.80
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Mar 22, 2017 10:57 am
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