ICICI Direct expects USDINR to find resistance at lower levels. Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
The rupee rebounded from early lows to end almost flat at 70.97 against the US dollar on Wednesday helped by a record-breaking run in the equity markets • The US dollar strengthened against major global currencies after solid US industrial output and housing data dashed hopes a rate cut anytime soon. Industrial output recovered strongly in November after the end of the strike by General Motors auto workers.
Yields on the government’s 10-year treasury bill fell 0.62% and ended at 6.71 vs. 6.75 • The US 10-year treasuries yield dipped one basis point to 1.92% after rising four basis points on Wednesday.
Currency futures on NSE
The dollar-rupee December contract on the NSE was at 71.08 in the previous session. Open interest declined 6.94% in the previous session • We expect the US$INR to find resistance at lower levels. Utilise upsides in the pair to initiate short positions.
|US$INR December futures contract (NSE)||View: Bearish on US$INR|
|Sell US$ in the range of 71.15 -71.20||Market Lot: US$1000|
|Target: 71.00 / 70.90||Stop Loss: 71.30|
|Support: 71.00/70.80||Resistance: 71.20/71.30|