Last Updated : Oct 11, 2018 12:44 PM IST | Source:

Buy USDINR; target of 74.75 - 74.80: 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 ended mildly higher tracking a smart recovery in domestic equities. However, it is expected to open at fresh record lows amid sharp selling in global equities • The US$ is weighed by a recovery in major currencies as well as a decline in US yields. The US President’s comments over the Fed rate hike trajectory led to a sharp decline in US yields. The JPY continues to gain owing to a hit to risk - on sentiment. US$ may see some further declines. However, EM currencies may fail to capitalise on dollar losses amid shaky sentiment.

Benchmark yield

Government bonds rose as the rupee saw some recovery while a decline in crude oil prices is also positive for domestic debt. Crude has reversed sharply from $ 85 / bl while a decline in US yields may further support domestic debt • US treasury yields further declined as US equities tumbled while the US President’s apparent displeasure at the Fed’s rate hiking spree also led investors to cover shorts in US debt.

Currency futures on NSE

The dollar - rupee October contract on the NSE was at 74. 38 in the previous session. October contract open interest declined 1.46 % 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$INR October futures contract (NSE) View: Bullish on US$INR
Buy US$ in the range of 74.44 -74.52 Market Lot: US$1000
Target: 74.75 / 74.80 Stop Loss: 74.32
Support Resistance
S1/ S2: 74.50 / 74.30 R1/R2:74.80 /74.95
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

First Published on Oct 11, 2018 12:44 pm
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