Sell USDINR; target of : 82.50 : ICICI Direct

ICICI Direct, The US dollar slipped by 0.4% yesterday after US FOMC meeting minutes failed to provide any new information about the size of its expected rate hike in the upcoming meeting.

January 05, 2023 / 10:28 IST

Indian Rupee

ICICI Direct's currency report on USDINR

The US dollar slipped by 0.4% yesterday after US FOMC meeting minutes failed to provide any new information about the size of its expected rate hike in the upcoming meeting. As per CME Fedwatch tool, probability of a 25 bps rate hike in the February meeting is 69.7%. Further, ISM manufacturing PMI data showed activity in the sector contracted for a second consecutive month • Rupee future maturing on January 27 appreciated by 0.23% tracking weakness in the dollar and sharp decline in crude oil prices. However, sharp gains were prevented on risk aversion in domestic markets • The rupee is likely to appreciate today amid a weak dollar and softening of crude oil prices. Further, optimistic global market sentiments may support the currency pair. Meanwhile, sharp gains may be prevented as investors are wary ahead of major economic data from the US. US job data is likely to show that labour market remained tight. US$INR (January) is facing strong resistance near 83.10 levels. As long as it sustains below this level it may slip back to 82.50 levels.

Intra-day strategy

USDINR Jan futures contract (NSE)
Sell USDINR in the range of 82.88-82.90
Target: 82.50	Stoploss: 83.10
Support: 82.60/82.50	Resistance: 83.10/83.20

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