Sell USDINR; target of : 81.90 : June 16, 2023: ICICI Direct

ICICI Direct's currency report on USDINR

The US dollar index dropped more than 0.80% after the European Central Bank raised interest rates a day after the Federal Reserve paused its hikes. Further, the dollar came under pressure after the Philadelphia Fed Manufacturing Index in the US declined to -13.7 in June 2023 from -10.4 in May. Moreover, a drop in US 10 year’s treasury yields also weighed on the dollar • The rupee future maturing on June 27 depreciated by 0.13% on Thursday amid hawkish US Federal Reserve • The rupee is likely to appreciate today amid weakness in the dollar. Further, recent economic data from the US fuelled hopes that the US Fed may remain less hawkish then anticipated. However, sharp gains may be capped on a surge in crude oil prices and as India’s trade deficit widened to a five-month high to $22.12 billion in May. US$INR is expected to find resistance near 82.15 and trade in a downward trend towards the level of 81.90.

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