ICICI Direct expects USDINR to meet resistance at higher level . Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINRSpot Currency
The rupee fell against the US$ , as early gains were wiped out amid caution ahead of the US Fed chair Jerome Powell’s congressional testimony today • US$ remained almost unchanged against majors as gains over GBP were countered by losses against Euro . GBP declined from highs near 1.406 to settle lower at 1.396 as gains over rate hike prospects see profit booking ahead of US Fed chair Powell today. Traders expect JPY to gain further against US $ as year - end flows could weigh on the pair with left out exports further putting selling pressure.Benchmark yield
Sovereign bonds extended their decline at the start of the week amid rising expectations that the RBI could go for an interest rate hike earlier than expected in the backdrop of rising inflation as well as hardening global yields • US 10 - year yields fell to 2 . 86 % from 2.87 % . Market participants await US Fed chair Jerome Powell’s congressional testimony today for further cues.Currency futures on NSE The near month dollar - rupee March contract on the NSE was at 64.99. The March contract open interest increased 30.64 % from the previous day • We expect the US$ INR to meet resistance at higher level . 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 65.07 -65.13||Market Lot: US$1000|
|Target: 64.86 / 64.78||Stop Loss: 65.25|
|S 1/ S 2: 64.93 / 64.80||R 1/R 2:65.12 /65.25|