ICICI Direct expects USD to meet supply pressure at higher levels . Utilise up side in the pair to go short on the USDINR.
ICICI Direct's currency report on USDINRDebt market
Government bon ds fell for a fourth day as investors sold notes amid weak sentiment after a hawkish monetary policy stance by the central bank last week • The GoI benchmark 6.79 % 2027 bond yield rose to 6.78% from 6.76% in the previous session • Yield on the US10 - year yield was steady at 2.36 % in the previous session.Forex (US$/INR)
The rupee eked out modest gains, rising for a first time in three sessions against the US$, even as the US$ fell against major currencies • The US$ witnessed mild profit booking against major currencies. Contraction in job creation coupled with a stronger Euro weighed on the US$. The British pound gained sharply on a recent uptick in inflation coupled with rising labour wages. Such upbeat data may see BoE moving earlier than expected to raise interest rates that is bullish for GBP.Strategy In the currency futures market, the near month dollar - rupee October contract on the NSE ended at 65.54. The October contract open interest declined 1.56 % from the previous day • November contract open interest increased 3.78 % in the previous session • We expect the US$ to meet supply pressure at higher levels . Utilise up side in the pair to go short on the US$INR.
|US$INR October futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 65.45-65.55||Market Lot: US$1000|
|Target: 65.30 / 65.20||Stop Loss: 65.65|
|S1/ S2: 65.40 / 65.20||R1/R2:65.55 /65.75|