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 unchanged yesterday amid ranged moves in major currencies as well as absence of any major market moving data. It is likely to open higher today tracking further gains in CNY as well as soft US$ • The US$ index ended lower amid a sharp bounce in GBP and Euro. Revival of Brexit hopes led to a sharp rally in the British Pound. High level US-China trade talks are currently underway. Sentiment has been buoyed by trade deal optimism. Any positive signals could see further gains in EM currencies led by.
Domestic benchmark 10-year yields ended higher at 6.46% on Thursday. Investors are likely to track the government’s spending data amid reduction in corporate tax levels • The US 10-year benchmark yield closed sharply higher at 1.67% yesterday. Positive signals from Brexit coupled with trade deal optimism buoyed yields.
Currency futures on NSE
The dollar-rupee October contract on the NSE was at 71.19 in the previous session. Open interest declined 2.64% 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 October futures contract (NSE)||View: Bearish on US$INR|
|Sell US$ in the range of 71.03 -71.07||Market Lot: US$1000|
|Target: 70.80 / 70.70||Stop Loss: 71.23|
|S1/ S2: 71.0 / 70.85||R1/R2:71.20 / 71.35|