ICICI Direct expects USDINR to witness selling pressure at higher levels. Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
The rupee is expected to open higher against the dollar after lower - than - expected domestic consumer inflation as well as soft inflation reading in the US • Strengthening momentum started on Wednesday when the rupee jumped amid hopes of measures by policymakers. It could continue today due to a rally in Asian currencies on optimism over proposed trade talks between the US and China, lower crude oil prices and tepid consumer price inflation data.
Government bonds are likely gain as crude oil prices fell overnight and as domestic inflation slowed to a level below the central bank’s target. The retail inflation rate slowed to a 10 - month low of 3. 69 % in August • US treasury yields across maturities dropped after data showed US consumer prices rose less than expected in August, moderating expectations Fed will raise interest rates another two times in 2018.
Currency futures on NSE
The dollar - rupee September contract on the NSE was at 72. 29 in the previous session. September contract open interest declined 5. 93 % in the previous session • We expect the US$INR to witness selling pressure at higher levels. Utilise upsides in the pair to initiate short positions.
|US$INR September futures contract (NSE)||View: Bearish on US$INR|
|Sell US$INR in the range of 72.15 -72.20||Market Lot: US$1000|
|Target: 71.95 / 71.85||Stop Loss: 72.38|
|S1/ S2: 71.95 / 71.60||R1/R2:72.35 /72.50|