ICICI Direct expects We expect US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINRSpot Currency
The rupee ended the session on a higher note as a recovery in risk - on sentiment amid the ongoing US President – North Korean leader’s historic summit supported risk - assets • The US $ was slightly higher against major currencies as strong gains over JPY helped the dollar offset losses against the Euro . The US President and North Korean leader’s historic summit is currently underway in Singapore. Any favourable outcome would see further losses in the JPY while the upcoming Fed monetary policy meeting as well as ECB policy meeting are significant events to be watched amid expectations of hawkish leanings by the ECB.Benchmark yield
Sovereign bonds ended with mild losses as yields rose amid a cautious tone ahead of key global central bank meetings this week • US 10 - year yields were unchanged as market participants await details emerging out of the US President - North Korean leader’s meeting . The upcoming Fed meeting will be watched wherein the Fed is expected to raise interest rates by 25 bps.Currency futures on NSE Near - month dollar - rupee June contract on the NSE was at 67. 56 in the previous session. June contract open interest declined 0.18 % in the previous day • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
|US$INR June futures contract (NSE)||View: Bullish on US$INR|
|Buy US$INR in the range of 67.45 - 67.53||Market Lot: US$1000|
|Target: 67.75/ 67.80||Stop Loss: 67.34|
|S1/ S2: 67.50 / 67.35||R1/R2:67.65 /67.80|