ICICI Direct expects USDINR to meet supply resistance at higher levels. Utilise upsides in the pair to go short in USDINR.
ICICI Direct's currency report on USDINRSpot Currency
The rupee gained sharply against the US$ as a rebound in domestic equities along with a recovery in risk on sentiment aided gains in most emerging currencies, including the rupee • The US $ posted a decent recovery against majors as the US and China signalled towards reconciliatory talks amid escalating risks of trade wars . However, post that the US President has indicated at further imposing tariffs on $ 100 billion of Chinese imports into the US. Euro and JPY stumbled as the US $ recovered. We expect Euro to decline further amid slumping inflation growth in Euro.Benchmark yield
Sovereign bond yields fell sharply as bonds rallied amid a recovery in risk - on sentiment as well as less - than - expected hawkish signals from RBI’s monetary policy meeting • US 10 - year yields rose to 2 . 83 % even as the US and China signalled towards soothing trade war rhetoric. US employment data for March would be keenly watched for further trends in US yields and US$.Currency futures on NSE The near - month dollar - rupee April contract on the NSE was at 65.10. The April contract open interest increased 6.83 % from the previous day • We expect US$INR to meet supply resistance at higher levels. Utilise upsides in the pair to go short in US$INR.
|US$INR April futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 65.10 - 65.16||Market Lot: US$1000|
|Target: 64.90 / 64.84||Stop Loss: 65.28|
|S1/ S2: 65.0 / 64.80||R1/R2:65.15 /65.30|