ICICI Direct's currency report on USDINR
The US dollar rallied as US treasury yields soared to new multiyear highs. Yields are rising on anticipation that US Federal Reserve will increase rates by half a point in the May meeting to combat high inflation • Rupee future maturing on March 29 appreciated by 0.08% amid positive domestic markets and decline in crude oil prices. However, sharp gains were prevented on consistent FII outflows and strong dollar • The rupee is expected to appreciate today amid softening of crude oil prices and optimistic domestic market sentiments. Meanwhile, strong dollar and consistent FII outflows will hurt rupee. Further, market will stay vigilant ahead of major economic data from US. Also, market participants are eyeing possibility of yield inversion in US, which is historically tracked as a predictor of recession.
Intra-day strategy
| USDINR April futures contract (NSE) | |
| Sell USDINR in the range of 76.28-76.30 | |
| Target: 76.00 | Stop Loss: 76.45 |
| Support: 76.10/76.00 | Resistance: 76.45/76.55 |
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