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Last Updated : Mar 09, 2020 12:24 PM IST | Source: Moneycontrol.com

Buy USDINR; target of 74.45 - 74.60: ICICI Direct

ICICI Direct expects Open interest rose 12.5% in the last session • Utilise downsides in the pair to initiate long positions.

Representative Image
Representative Image

ICICI Direct's currency report on USDINR

Spot Currency

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.

Benchmark yield

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.

Intra-day strategy 

US$INR March futures contract (NSE)View: Bullish on US$INR
Buy US$ in the range of 74.09-74.11Market Lot: US$1000
Target: 74.45/ 74.60Stop Loss: 73.90
SupportResistance
Support: 73.90/73.60Resistance: 74.45/74.60
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 Mar 9, 2020 12:24 pm
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