ICICI Direct expects USDINR to meet resistance at higher levels. Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINRSpot Currency
The rupee posted gains for a third consecutive session even though equities sputtered over concerns on rising banking sector woes. The rupee is expected to remain in a range till US Fed FOMC as Fed’s inflation outlook will determine trends in forex markets • The US$ remained largely in a range over caution ahead of ECB’s monetary policy meeting as well as Trump’s statements regarding tariff . JPY pared some of its gains as the US tried to calm the tariff concerns. However, we expect volatility to resume if US’ major trading partners retaliate with tariffs on US products.Benchmark yield
Sovereign bond yields dropped sharply as bonds recovered following stability in US yields as well as receding fears from trade intervention concerns • US 10 - year yields ended slightly lower at 2 . 88 % as the US tried to calm tariff concerns. However, yields could rise post the Fed’s FOMC monetary policy meeting this month.Currency futures on NSE The near month dollar - rupee March contract on the NSE was at 65.04. The March contract open interest increased 0.62 % from the previous day • We expect the US$INR to meet resistance at higher levels. Utilise upsides in the pair to initiate short positions.
|US$INR March futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 65.06 - 65.11||Market Lot: US$1000|
|Target: 64.85 / 64.80||Stop Loss: 65.23|
|S1/ S2: 64.90 / 64.80||R 1/R 2:65.15 /65.25|