ICICI Direct expects Open interest fell 0.45% in the previous session • Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
On the back of easing crude oil prices and weakening of American currency in overseas market the rupee rose by 10 paise on Monday. However, the Dollar Index rose late night, which may restrict the rupee from appreciating further • The Dollar Index continued to remain at elevated levels and ended at 98.83 vs. 98.68, which is the sixth consecutive positive close. Positive results in US fundamentals with safe haven demand following the outbreak of the Wuhan coronavirus and the potential impact on global growth have been sustaining the multi-session rally.
The yield on 10-year bond remained almost unchanged at 6.44. It rose only 0.03% • Treasury yields inched lower on Monday as investors tentatively reacted to lingering worries around the Coronavirus, amid questions on whether supply chains and factories in China will reopen soon.
Currency futures on NSE
The dollar-rupee February contract on the NSE was at 71.42 in the previous session. Open interest fell 0.45% in the previous session • Utilise downsides in the pair to initiate long positions.
|US$INR February futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 71.25-71.35||Market Lot: US$1000|
|Target: 71.45 / 71.55||Stop Loss: 71.15|
|Support: 71.15/71.00||Resistance: 71.40/71.60|
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