ICICI Direct expect the USDINR 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 sustained its opening gains on the back of USD weakness and strength in domestic markets. However, it is expected to see a mild weakening in the backdrop of elevated crude oil prices. The USD ended slightly higher amid profit booking in the GBP and JPY. Overall markets remained in a range in the absence of any major economic data. Investors await fresh development on the US - China trade rift as the US President had warned of follow - on tariffs if China imposed retaliatory duties on US imports.
Sovereign bond yields rose to 7. 89 % amid higher crude oil prices as well as expectations of a rise in domestic inflation US sovereign 10 - year yields rose to 2. 86 % as higher payrolls data has overlooked an uptick in unemployment data.
Currency futures on NSE
The dollar - rupee July contract on the NSE was at 68. 86 in the previous session. July contract open interest increased 2. 40 % in the previous day.We expect the USDINR to find supports at lower levels. Utilise downsides in the pair to initiate long positionsUSDINR Strategy
|USDINR July futures contract (NSE)|
|Buy USDINR in the range of 68.79 - 68.86||Market Lot: USD1000|
|Target: 69.05 / 69.12||Stop Loss: 68.68|
|S1/ S2: 68.80 / 68.65||R1/R2:69.05 /69.15|
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