Sell USDINR; target of : 81.30 : ICICI Direct

Food subsidies are expected to be around 20 percent of central government revenues this fiscal

ICICI Direct's currency report on USDINR

The US dollar index recovered from its seven month lows as better than-expected economic numbers showed strength in the US economy and pushed bond yields higher. The Q4 advance GDP numbers improved to 2.9% against market expectation of 2.6%. The weekly unemployment claims fell to a nine-month low of 186,000, showing a stronger labour market. Furthermore, durable goods order rose 5.6% MoM, stronger than expectation of 2.5% and the biggest increase in nearly two and a half years • Rupee future maturing on January 27 appreciated by 0.07% on Wednesday amid weak dollar and softening of crude oil prices • The rupee is likely to appreciate towards the 81.30-81.10 zone following improvement in global risk appetite and strong dollar inflows. Further expectation of decline in US core PCE price index (YoY) to 4.4% could force the Fed to dial back its aggressive rate hike policy. US$INR is likely to face rejection near 81.80 and move towards the immediate support at 81.30

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27012023 - currency