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 ended lower weighed by strength in US$ as well as cautiousness amid higher crude oil prices . Increased risks of widening global trade rift could weigh on emerging currencies including rupee The US$ was slightly higher amidst profit booking in Euro and further declines in JPY. US administration has released biggest list of Chinese goods it may hit with tariff increases. Currencies along with other asset classes may witness volatility if China too warns with further tariffs on US imports. This could lead to widening cross border trade rift and could risk global growth.
Sovereign bond yields rose to 7.90% as crude oil prices continue to rise gradually while rising risks of global trade wars could aggravate outflows concerns from domestic markets US sovereign 10-year yields declined mildly to 2.85% as US administration has warned of imposing additional tariffs on bigger list of Chinese imports into US
Currency futures on NSE
The dollar-rupee July contract on the NSE was at 68.98 in the previous session. July contract open interest declined 1.31% in the previous day We expect the US$INR to find supports at lower levels.Utilise downsides in the pair to initiate long positions
|USDINR July futures contract (NSE)|
|Buy USDINR in the range of 68.88 - 68.94||Market Lot: USD1000|
|Target: 69.10 / 69.18||Stop Loss: 68.76|
|S1/ S2: 68.85 / 68.70||R1/R2:69.10 /69.25|
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