ICICI Direct expects Open interest increased almost 4.85% in the previous session • Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
The rupee gave away its early morning gains to settle on a flat note at 70.87 against the US dollar ahead of the signing of the US-China trade deal and weak macro economic data on the domestic front. A marginal rise in crude oil prices and strengthening of the American currency in the overseas market also dragged the domestic unit lower • The Dollar index is extending the weekly upside for the second session in a row on Tuesday amid the prevailing risk-on tone and despite poor results from domestic companies and declining US yields.
Yields on the government’s 10-year treasury bill increased further to 6.67 ahead of inflation number. Higher-than-expected inflation numbers may keep some pressure on yields • US treasury prices fell for a second day and ended at 1.81 vs. 1.85, down 1.9%.
Currency futures on NSE
The dollar-rupee January contract on the NSE was at 70.98 in the previous session. Open interest increased almost 4.85% in the previous session • Utilise downsides in the pair to initiate long positions.
|US$INR January futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 70.90-71.00||Market Lot: US$1000|
|Target: 71.20 / 71.30||Stop Loss: 70.85|
|Support: 70.75/70.55||R1/R2: 71.15/71.35|