Sell USDINR; target of : 81.75 : ICICI Direct

ICICI Direct's currency report on USDINR

The US dollar index edged higher on Friday amid better-than expected jobs data from the US, potentially giving the Federal Reserve more leeway to keep hiking interest rates. The unemployment rate in the US inched lower to 3.4% in January 2023, the lowest level since May 1969 and below market expectations of 3.6%. Further, a rise in US 10 year treasury yields supported dollar • Rupee future maturing on February 24 appreciated by 0.32% amid an uptick in domestic equity markets • The rupee is expected to appreciate today amid softening of crude oil prices and rise in risk appetite in domestic markets. Meanwhile, sharp upside may be prevented on strong dollar and persistent FII outflows. Additionally, investors will now closely watch RBI’s monetary policy scheduled on February 8, where the central bank may hike rates by 25 bps. The US$INR is likely to break the key support level of 81.85 to continue trading towards the level of 81.75.

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03022023 - currency