Buy USDINR; target of : 82.25 : ICICI Direct

ICICI Direct's currency report on USDINR

The US dollar edged higher by more than 0.50% on Monday after data showed New York state factory activity in April increased for the first time in five months, reinforcing expectations that the Federal Reserve will raise interest rates in the May meeting. Further, the dollar gained on a surge in US treasury yields across curve • Rupee future maturing on April 26 depreciated by 0.16% on Monday amid a strong US dollar and sharp drop in domestic equity markets • The rupee is likely to trade with a negative bias amid a strong US dollar. Meanwhile, investors will closely watch housing data from the US to gauge the economic health of the country, which may provide more cues on Fed interest rate path. US$INR is expected to break the key resistance level of 9 DMA at 82.13 to continue its upward trend towards the level of 82.25 in the coming trading session.

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