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 ended at highest levels 21 st August 2018 benefitting from dip in crude oil prices as well as revival in Foreign fund inflows. It is expected to open mildly lower today while upcoming OPEC meet and RBI monetary policy meeting to provide cues for Rupee in near term • The US$ rose sharply amidst profit booking in major currencies as well as expected a truce in US - China trade thaw for the time being . However upcoming Federal reserve monetary policy meeting to be a significant event for moves in US $ in near term.
Government bonds jumped sharply owing to a sustained decline in oil prices as well as buying support from the central bank. They are further expected to rally amid a fall in US yields and lower oil prices • US treasury yields were unchanged even as investors remain cautious ahead of G - 20 meeting as well as relatively dovish Fed chief comments.
Currency futures on NSE
The dollar - rupee December contract on the NSE was at 69. 85 in the previous session. December contract open interest declined 3. 60 % in the previous session • We expect the US$INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.
|US$INR December futures contract (NSE)||View: Bearish on US$INR|
|Sell US$ in the range of 70.03 -70.09||Market Lot: US$1000|
|Target: 69.80 / 69.70||Stop Loss: 70.22|
|S1/ S2: 69.95 / 69.75||R1/R2:70.15 /70.25|