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Sell USDINR; target of 73.91: ICICI Direct

ICICI Direct US$INR futures fell sharply on Thursday as a weaker dollar trend earlier dragged prices to their fresh five month low of 74.02.

August 28, 2020 / 08:44 AM IST

ICICI Direct's currency report on USDINR

Spot Currency

US$INR futures fell sharply on Thursday as a weaker dollar trend earlier dragged prices to their fresh five month low of 74.02. However, small correction in domestic equities gave some support to the pair. The US dollar index gained on Thursday in choppy trading after Federal Reserve Chairman Jerome Powell said, as widely expected, that the US central bank would roll out an aggressive new strategy to lift US employment and inflation.

Currency futures on NSE

Under the new approach, the US central bank will seek to achieve inflation averaging 2% over time, offsetting below -2% periods with higher inflation “for some time,” which is likely to put pressure on the dollar. The dollar-rupee September contract on the NSE was at 74.13 in the last session. The open interest in the September series increased 34.6% while it also increased by 29.08% in the next series.

Intra-day strategy 

US$INR Sep futures (NSE)View: Bearish on US$INR
Sell US$INR in the range of 74.23-74.27Market Lot: US$1000
Target: 73.91Stop Loss: 74.48

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

first published: Aug 28, 2020 08:44 am

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