Buy USDINR; target of 75.90 - 76.05: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

The rupee found some strength despite weak equity markets and ended almost flat at 75.66 in the last trade. It has been trading in a narrow range and can expect a fall in coming sessions with strengthening of the US dollar. However, easing of crude prices may provide some support • The dollar index found some strength against rest of the currencies as investors grew cautious about a resurgence in US Coronavirus cases. Riskier assets like equities paved the way for safe havens like gold and dollar in the last session.

Currency futures on NSE

The rupee has been finding support near 75.50 levels and witnessed some up move amid weakness in the equities. We believe that immediate support for the rupee is around 75.40 while it should be bought on declines • The dollar-rupee contract on the NSE was at 75.80 in the last session. The open interest increased almost 7% in the July series during settlement.

Intra-day strategy