ICICI Direct expects USD to meet resistance at higher levels. Utilise the up side in the pair to go short on the USDINR.
ICICI Direct's currency report on USDINRDebt market
Government bonds fell, as an additional market borrowing plan and rising crude oil prices continued to hurt the mood, even as traders awaited the auction of the new 10 - year note today • The GoI benchmark 6.79 % 2027 bond yield rose to 7.33 % from 7.32 % in the previous session • Yield on the US 10 - year benchmark bond was steady at 2.4 5 % in the previous session.Forex (US$/INR)
The rupee rose to a near 30 - month high against the US$, shrugging off a likely central bank intervention, as a strong Euro amid higher quota for FIIs in corporate bonds • The US$ is headed for a fourth straight week of losses even as major currencies continue to enjoy the dollar weakness. However, the JPY lost yesterday against the US$ while the euro continued to gain against most currencies. Today’s employment data holds cue s for the US$, as a lower reading could further fire the Euro.Strategy In the currency futures market, the near month dollar - rupee January contract on the NSE was at 63.56. The January contract open interest increased 2. 01 % from the previous day • February contract US$INR ended at 63.76. Open interest increased 4.01 % 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 63.53 - 63.61||Market Lot: US$1000|
|Target: 63.40 / 63.35||Stop Loss: 63.73|
|S1/ S2: 63.45 / 63.35||R1/R2:63.65 /63.75|