Buy USDINR; target of 71.70 - 71.80: ICICI Direct
ICICI Direct expects USDINR to find support at lower levels. Utilise upsides in the pair to initiate long positions.
December 30, 2019 / 10:36 AM IST
ICICI Direct's currency report on USDINR
The rupee depreciated by 4 paise to end at a fresh three-week low of 71.35 against the US dollar on December 27, continuing its losing streak for a sixth day in a row amid a steady rise in crude oil prices • The dollar was on the defensive on Monday in light year-end trade after suffering a setback the previous session, as hopes of a US-China trade deal lifted investors’ risk appetite, sapping safe-haven demand for the greenback.
Yields on the government’s 10-year treasury bill fell 1.15% and closed at 6.51 vs. 6.58 • The recent uptick in the US treasury yields could be attributed to the positive signals concerning the US-China phase-one trade deal.
Currency futures on NSE
The dollar-rupee January contract on the NSE was at 71.60 in the previous session. Open interest rose 22.8% in the previous session • We expect the US$INR to find support at lower levels. Utilise upsides in the pair to initiate long positions.
|US$INR January futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 71.45 -71.55||Market Lot: US$1000|
|Target: 71.70 / 71.80||Stop Loss: 71.35|
|Support: 71.35/71.25||Resistance: 71.75/71.85|