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 pared its opening gains to end lower amid profit booking as well as caution ahead of the G - 20 meeting this week. Also, upcoming state elections would keep the rupee on the edge ahead of general elections next year • The US $ was higher against major currencies supported by fresh comments from the US President rekindling trade concerns. However, investors would still await the outcome of the G - 20 meeting as well as expected meet between the US President and the Chinese Premier
Government bonds witnessed some profit booking in the previous session while a slump in oil prices and gaining rupee increased the attractiveness of domestic debt. A cool down in US yields is also positive for EM debt, including India • US treasury yields were higher as investors booked profit in debt amid fresh comments from the US President regarding import tariff on remaining Chinese imports into the US.
Currency futures on NSE
The dollar - rupee November contract on the NSE was at 70. 82 in the previous session. November contract open interest declined 11. 90 % 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 November futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 70.74 -70.80||Market Lot: US$1000|
|Target: 71.05 / 71.15||Stop Loss: 70.62|
|S1/ S2: 70.80 / 70.60||R1/R2: 70.95 /71.15|