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 USDINR
Spot Currency The rupee ended the session lower amidst cautious stance ahead of FOMC policy meeting. Higher domestic retail inflation as well as Fed’s rate hike trajectory shall cap runaway rupee appreciation • The US $ ended lower even though Fed raised interest rates by 25 - bps meeting the market expectation. It boosted prospects for further two rate hikes for 2018, which market shall digest in near term. Dollar declined as Euro gained on the back of positioning ahead of ECB monetary policy meeting today. Strength in major currencies amidst hawkish major central banks shall weigh on emerging currencies including rupee.Benchmark yield
Sovereign bonds reversed losses as yields declined by almost 0. 45 %. Market participants remain cautious ahead of crucial OPEC meeting in Vienna. • US 10 - year yields was slightly higher even as Fed moved to raise interest rates by 0. 25 %. US is expected to impose customs on Chinese imports which has raised the fears of cross border trade disruptions.Currency futures on NSE Near - month dollar - rupee June contract on the NSE was at 67. 74 in the previous session. June contract open interest declined 1. 08 % 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 67.58 - 67.64||Market Lot: US$1000|
|Target: 67.85/ 67.90||Stop Loss: 67.47|
|S1/ S2: 67.60 / 67.45||R1/R2:67.75 /67.90|