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Last Updated : Aug 16, 2019 11:40 AM IST | Source: Moneycontrol.com

Buy USDINR; target of 71.55 - 71.65: ICICI Direct

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

Spot Currency

The rupee closed slightly higher v/s US$, although it pared most of its opening gains by the end of the session. It is likely to open slightly changed while losses in CNY and strength is US$ is likely to exert pressure on Rupee • The US dollar extended further gains with dollar index ending the session higher above 98.0 levels. Weakness in Euro and profit booking in JPY supported gains in dollar index. Chinese Yuan is currently trading at 7.03 levels. Depreciation in CNY is putting pressure on most of the EM currencies including Rupee. Development on US-China Trade front is likely to dictate moves in currencies in near term.

Benchmark yield

Sovereign bond yields rose to 6.63% as outflows from domestic markets and confusion over sovereign bond issue abroad is creating a hurdle for a further decline. Yields are likely to remain in a range in the near term • US 10-year yields fell 5-bps to end at 1.53%, testing almost threeyear lows. Sharper cool off in 10-year yields compared to near term treasuries is posing the risks of slowdown in US economy.

Currency futures on NSE

The dollar-rupee August contract on the NSE was at 71.40 in the previous session. Open interest increased 1.20% in the previous session • We expect the US$INR to find supports 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 71.25 -71.31Market Lot: US$1000
Target: 71.55 / 71.65Stop Loss: 71.12
SupportResistance
S1/ S2: 71.25 / 71.10R1/R2:71.55 / 71.70
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 16, 2019 11:40 am
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