ICICI Direct expects Open interest rose 12.5% in the last session • Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
The rupee resumed its downward journey after a day's hiatus on Friday, plummeting by 46 paise to 73.78 against the US dollar as coronavirus-panicked investors assessed deteriorating financial markets. • US dollar index tumbles below 95.00, the lowest since Oct 2018. The US dollar remains broadly battered for the fourth consecutive day on what seems to be Black Monday, with a flash crash seen across the fx space and Asian stocks smashed alongside Wall Street futures and Treasury yields.
The bull run in India’s sovereign bonds is set to continue as inflation peaks, providing the central bank with room to resume rate cuts. Domestic investors have led a charge into government debt as the RBI kept them flush with funds through liquidity operations. • The entire Treasury yield curve tumbled, trading below 1% for the first time in history as investors grappled with the worst global crisis in more than a decade. A drop to 0% is now priced in swap markets.
Currency futures on NSE
The dollar-rupee March contract on the NSE was at 73.94 in the previous session. Open interest rose 12.5% in the last session • Utilise downsides in the pair to initiate long positions.
|US$INR March futures contract (NSE)||View: Bullish on US$INR|
|Buy US$ in the range of 74.09-74.11||Market Lot: US$1000|
|Target: 74.45/ 74.60||Stop Loss: 73.90|
|Support: 73.90/73.60||Resistance: 74.45/74.60|
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