ICICI Direct expects US$ to meet resistance at higher levels. Utilise the up side in the pair to go short on the US$INR.
ICICI Direct's currency report on USDINRDebt market
Government bonds rose as new 10 - year bond started trading while the government sold less debt than planned. S ale of sovereign debt quotas for foreign investors by state administration would remain in focus • The GoI benchmark 6.79 % 2027 bond yield declined to 7. 29 % from 7.33 % in the previous session • Yield on the US 10 - year benchmark bond rose to 2.4 8 % from 2.45% in the previous session.Forex (US$/INR)
The rupee logged its biggest weekly rise in five months against the dollar, helped by foreign fund inflows and a broad US$ weakness • US$ rose slightly against major currencies as Euro witnessed profit booking while slightly higher US December manufacturing payrolls data supported dollar gains. December non - farm payrolls were lower at 148000 against previously 1 90000 rolls. JPY continue to lo se against most majors as divergent monetary policies le d to JPY being dumped while waning risk concerns could see further weakness in JPY.Strategy In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63. 52. The January contract open interest declined 5.64 % from the previous day • February contract US$INR ended at 6 3. 72. Open interest increased 2.21 % in the previous session • We expect the US$ to meet resistance at higher levels. Utilise the up side in the pair to go short on the US$INR.
|US$INR January futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 63.60 - 63.65||Market Lot: US$1000|
|arget: 63.40 / 63.35||Stop Loss: 63.78|
|S1/ S2: 63.50 / 63.35||R1/R2:63.65 /63.75|