ICICI Direct expects USDINR to meet supply pressure at higher levels . Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
The rupee recovered against the US $ even as the dollar witnessed profit booking against major currencies . A halt in Chinese Yuan depreciation is positive for EM currencies including the rupee • The US $ witnessed mild profit booking in the backdrop of gains in the Euro . The GBP and JPY remained steady against the dollar . Investors tracked the recent announcement by the Trump administration that it will slap tariffs on another $ 16 billion of Chinese imports later in August . China has also announced it will impose counter tariffs on equivalent US imports into China.
Sovereign bonds declined as yields rose mildly but largely remained in a range . A recovery in crude oil prices may see yields rising in the near term • US sovereign 10 - year bond yields rose mildly even as the Trump administration has announced it may slap tariffs on $ 16 billion of Chinese imports by August end . Traders would track the trade rift closely as its spills to the next phase.
Currency futures on NSE
The dollar - rupee August contract on the NSE was at 68 . 85 in the previous session . August contract open interest declined 0 . 03 % in the previous day • We expect the US$INR to meet supply pressure at higher levels . Utilise upsides in the pair to initiate short positions.
|US$INR August futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 68.89-68.95||Market Lot: US$1000|
|Target: 68.75 / 68.65||Stop Loss: 69.08|
|S1/ S2: 68.80 / 68.65||R1/R2:68.95 /69.10|