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
The rupee ended unchanged in the previous session amid indecisiveness and caution ahead of Budget day and US FOMC policy meeting. However, it is expected to open weaker today tracking a rise in the US $ as well as higher oil price • The dollar ended on a slightly higher note as losses against Euro were more than offset by gains against GBP and JPY. The pound declined as lawmakers rejected a proposal to delay the UK’s exit from EU. Uncertainty around Brexit has only increased as we head towards the actual Brexit date of March 29, 2019.
Sovereign treasury yields remain in a range ahead of Budget day tracking muted moves in global yields. The upcoming Union Budget and RBI monetary policy meeting will provide signals for domestic debt in the near term • US treasury yields declined yesterday’s. However, market participants would be tracking the upcoming Fed monetary policy meeting in the backdrop of lower expectation of faster rate hikes.
Currency futures on NSE
The dollar - rupee February contract on the NSE was at 71. 33 in the previous session. January contract open interest increased 32. 72 % in the previous session • We expect the US$INR to find support at lower levels. Utilise downsides in the pair to initiate long positions.
|US$INR February futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 71.26 -71.34||Market Lot: US$1000|
|Target: 71.55 / 71.65||Stop Loss: 71.14|
|S1/ S2: 71.35 / 71.25||R1/R2:71.55 /71.65|
Coupon code: DIWALI. Offer valid till 10th November, 2019 .