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Last Updated : Oct 09, 2019 12:55 PM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.30 - 71.40: ICICI Direct

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

ICICI Direct's currency report on USDINR

Spot Currency

The rupee ended lower on Monday amid caution ahead of a trading holiday as well as strength in the US$. It is likely to open slightly higher today tracking a slump in oil prices while strength in the dollar could cap a sharp appreciation in the rupee • The US$ index ended on a higher note above 99.13 levels as deepening uncertainty over Brexit is weighing on Euro and GBP. Even as UK’s separation date from EU bloc is October 31, the clarity or likeliness of a “Exit deal” is as uncertain as ever. EM currencies remain ranged bound even as the Chinese markets remains closed due to national holidays. A move in CNY post the holiday season is likely to provide cues to EM currencies, including the rupee.

Benchmark yield

Domestic benchmark 10-year yields ended lower at 6.68% on Monday. The RBI cut the policy rate by 25 bps and affirmed its commitment to remain accommodative to address growth concerns 'as long as necessary’ • The US 10-year benchmark yield fell to 1.53% yesterday. US-China trade worries on top of Brexit uncertainty is weighing on yields.

Currency futures on NSE

The dollar-rupee October contract on the NSE was at 71.18 in the previous session. Open interest declined 0.93% 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$INR October futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 71.02 -71.06Market Lot: US$1000
Target: 71.30 / 71.40Stop Loss: 70.87
SupportResistance
S1/ S2: 71.05 / 70.90R1/R2:71.25 / 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 Oct 9, 2019 10:52 am
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