ICICI Direct expects USDINR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
The rupee extended another session of losses amid caution ahead of RBI’s monetary policy meeting as well as a rebound in oil prices. Investors would be tracking today’s policy meeting in the backdrop of Opec oil producer’s meet • The US $ extended mild declines against major currencies amid a rise in Japanese Yen as well as intra - day gains in Euro . Investors booked profits amid rising scepticism over the US - China trade deal. Investors would be closely tracking the Fed’s rate hike trajectory as well as progress over the US - China trade deal.
Government bonds gained ahead of RBI’s policy meeting in the backdrop of steady oil prices. An overall decline in oil prices as well as buying support from the central bank is positive for domestic debt • US treasury yields moved lower amid risk of curve reversion . Trade deal relief rally came under profit booking amid scepticism over the trade deal.
Currency futures on NSE
The dollar - rupee December contract on the NSE was at 70. 69 in the previous session. December contract open interest increased 1. 71 % in the previous session • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
|US$INR December futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 70.42 -70.48||Market Lot: US$1000|
|Target: 70.75 / 70.95||Stop Loss: 70.29|
|S1/ S2: 70.55 / 70.40||R1/R2:70.75 /70.90|