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Buy USDINR; target of 69.50 - 69.60: ICICI Direct

ICICI Direct expects USDINR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

March 28, 2019 / 11:53 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended mildly lower at 68.88 vs. US$ as strength in dollar and rising concerns on global growth weighed on. It is further expected to open slightly lower against dollar tracking overnight dollar strength • The dollar extended mild gains even as US yields drifted lower in yesterday’s session. Uncertainties around Brexit and concerns over global growth are weighing on major central banks. The ECB President signalled on a delay in interest rate hike, which is weighing on the Euro. Upcoming US employment data and US-China trade talks outcome remain key events to be watched.

Benchmark yield

Sovereign benchmark treasury yields declined to 7.33% yesterday. Domestic retail inflation for February rose to 2.57% while flows in the debt segment would keep yields contained. Gradually rising crude oil prices will remain in focus in the near term • US treasury yields fell to 2.37% yesterday amid leading to a resurfacing of global growth concerns as well as Brexit stalemate. Europe and Japan 10-year debt yields have become negative in the last few sessions.

Close

Currency futures on NSE

The dollar-rupee April contract on the NSE was at 69.28 in the previous session. April contract open interest rose 37.02% in the previous session • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy 

US$INR April futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 69.20 -69.26Market Lot: US$1000
Target: 69.50 / 69.60Stop Loss: 69.07
SupportResistance
S1/ S2: 69.15 / 69.00R1/R2:69.40 /69.55
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: Mar 28, 2019 11:53 am
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