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Last Updated : Aug 13, 2019 11:16 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.25 - 71.35: ICICI Direct

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

Representative image
Representative image

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended mildly lower vs. the US$ on Friday as the Chinese Yuan has tested 7.06 levels against the US$. It is expected to open lower today tracking a further weakening bias in the CNY • The US dollar closed slightly lower yesterday even as overall it remains in a consolidation mode. The dollar witnessed mixed moves. The euro gained over dollar while the British pound further slumped vs. the US$ and is fast approaching low levels since Brexit referendum outcome. The JPY mounted gains vs. the US$ amid safe haven buying. Investors would be tracking CNY as consistent depreciation risks further a rout in EM currencies.

Benchmark yield

Sovereign bond yields further jumped to 6.50% as outflows from domestic markets and confusion over sovereign bond issue abroad is creating hurdle for further decline. However, a cool-off in global yields is likely to cap a rise in domestic yields • US 10-year yields witnessed a further slide and ended at 1.65% yesterday. Escalation in US-China trade war is likely to see the Fed remain dovish citing increasing risks to growth.

Currency futures on NSE

The dollar-rupee August contract on the NSE was at 70.90 in the previous session. Open interest increased 1.42% in the previous session • We expect the US$INR to find support at lower levels. Utilise downsides in the pair to initiate long positions.

Intra-day strategy 

US$INR August futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 71.03 -71.07Market Lot: US$1000
Target: 71.25 / 71.35Stop Loss: 70.88
SupportResistance
S1/ S2: 71.0 / 70.85R1/R2:71.30 / 71.40
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 on Aug 13, 2019 11:16 am
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