Buy USDINR; target of : 82.80 : ICICI Direct

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ICICI Direct's currency report on USDINR

The US dollar slipped yesterday after the US Federal Reserve raised interest rate by 50 bps as expected. Further, officials see unemployment rate rising and economic growth being tepid in 2023. However, a sharp fall was cushioned as investors were left disappointed after the Fed signalled they see rates rising to around 5.1% by the end of next year • Rupee future maturing on December 28 appreciated by 0.43% yesterday tracking weak dollar and optimistic domestic market sentiments. However, market participants remained cautious ahead of outcome of US Federal Reserve monetary policy meeting • The rupee may depreciate today on the back of risk aversion in global markets and surge in crude oil prices. Market sentiments were hurt as the US Fed signalled that rates may move even higher than previously expected to control inflation and no policymakers are projecting rate cuts next year. Also, investors will remain vigilant ahead of ECB and BOE monetary policy, where both central bank are likely to raise interest rate. US$INR (December) is likely to trade in range of 82.35-82.80.

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15122022 - currency