Sell USDINR; target of : 81.90 : May 11,2023: ICICI Direct

ICICI Direct's currency report on USDINR

The US dollar index fell by 0.20% on Wednesday as the US CPI dropped below the expected 5% mark for the first time since June 2021. The drop in the April CPI to 4.9% knocked the Treasury yields lower and raised the bets that Fed would cut the rates in this year. Rupee future maturing on May 29 appreciated by 0.03% on Tuesday on the back of weak dollar • US$INR is likely to face the hurdle near 82.15 and decline towards the 81.80 as the probability of rate cut towards the second half of the year has increased. US$INR could face the resistance of 50 day EMA at 82.15 and slide towards the immediate support at 81.80. A move below 81.80 would weaken further towards 81.60.

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