Sell USDINR; target of : 81.55 : ICICI Direct

ICICI Direct, The US dollar ended flat on Wednesday ahead of key US CPI print. The US 10-year yield declined while equities marked a significant gain amid expectation of cooling inflation number that could provide room for the Fed to dial back on its aggressive rate hike.

January 12, 2023 / 10:08 IST

Budget 2023

ICICI Direct's currency report on USDINR

The US dollar ended flat on Wednesday ahead of key US CPI print. The US 10-year yield declined while equities marked a significant gain amid expectation of cooling inflation number that could provide room for the Fed to dial back on its aggressive rate hike. CPI is expected to decline to 6.5% YoY against the previous reading of 7.1% • Rupee future maturing on January 27 continued its appreciation yesterday and settled at 81.7075 as it breached the key support at 81.80 • The rupee is likely to gain strength on weakness in the dollar and rise in risk appetite in global markets. Further, the rupee may gain strength on expectation of improved economic data from India. CPI data is likely to show inflation remained within RBI’s comfort zone for a second consecutive month. Industrial production data is likely to show that output grew in November. US$INR (January) is expected to appreciate towards 81.40 as long as it remains below the 50 day SMA at 82.10.

Intra-day strategy

USDINR Jan futures contract (NSE)
Sell USDINR in the range of 81.95-81.98
Target: 81.55	Stoploss: 82.10
Support: 81.55/81.40	Resistance: 82.10/82.22

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