ICICI Direct After an initial up move, the rupee depreciated sharply and moved lower against the US dollar.
ICICI Direct's currency report on USDINR
After an initial up move, the rupee depreciated sharply and moved lower against the US dollar. Sharp selling in equities along with rising cases of Coronavirus globally triggered panic selling • The dollar index further gained momentum triggered by risk of sentiments, which pulled the index towards 94 levels. US initial claims rose more than expected by 898,000 week on week.
Currency futures on NSE
As there was a risk of sentiment trades, which pushed the dollar index sharply higher, profit booking was seen in the rupee due to which it depreciated. However, we feel the rupee has moved near its supply zone and the spread between spot and future has risen. The rupee could appreciate again and move towards 73.25 levels • The dollar-rupee October contract on the NSE closed near 73.51 in the last session. The open interest fell 1.33% in the last session.
|US$INR Oct futures contract (NSE)||View: Bearish on US$INR|
|Sell US$ in the range of 73.55-73.60||Market Lot: US$1000|
|Target: 73.35/ 73.25||Stop Loss: 73.71|
|Support: 73.25/73.15||Resistance: 73.65/73.75|