Buy USDINR; target of : 82.55 : May 18, 2023: ICICI Direct

ICICI Direct, The US dollar gained 0.24% on Wednesday on optimism about a deal to extend the debt ceiling and avert US default.

May 18, 2023 / 09:24 IST

rupee

ICICI Direct's currency report on USDINR

The US dollar gained 0.24% on Wednesday on optimism about a deal to extend the debt ceiling and avert US default. Further, improved economic numbers and hawkish comments from the fed members suggests rate cuts from Federal Reserve could come later. Further jump in 10 and two year treasury yields to two-week highs supported the dollar • Rupee future maturing on May 29 depreciated by 0.19% on Wednesday amid strong dollar and rise in crude oil prices • The rupee is likely to depreciate amid a firm dollar and surge in crude oil prices. Additionally, investor will remain cautious ahead of Fed member’s speech and US jobless claims number to get hints on the future rate trajectory. For the day, US$INR is expected to rise towards 82.60 as long as it holds above 82.20.

Intra-day strategy

USDINR May futures contract (NSE)
Buy US$INR in the range of 82.35-82.36
Target:82.55	Stop Loss: 82.20
Support: 82.34/82.20	Resistance: 82.58/82.70

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