Sell USDINR; target of : 81.20 : ICICI Direct

Rupee

ICICI Direct's currency report on USDINR

The US dollar index recovered from its seven-month low and closed above the 102 mark following the rally in US 10 year bond yields. The base trend is weak in the dollar index amid concerns over US recession and prospects of less aggressive Fed. The weakness in the US housing and manufacturing sector raised growth concerns, which could force the Fed to change its hawkish stance • Rupee future maturing on January 27 depreciated by 0.31% to settle at 81.46 on Monday amid expectations of softer tightening by the RBI • The rupee is likely to appreciate today amid rising risk appetite in the global market and weakness in the dollar. Further expectation of weaker US service and manufacturing PMI numbers could restrict the dollar to recover. US$INR is still hovering below the 20 day EMA at 81.75, which could act as key resistance for the pair. As long as it remains below 81.75 the pair is expected to slide towards the immediate support at 81.20, followed by 81.00.

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24012023 - currency