Sell USDINR; target of : 81.78 : ICICI Direct

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ICICI Direct's currency report on USDINR

The US dollar index fell 0.42% on Friday on lower bond yields, after the Fed policy makers pointed a slow and steady approach is the need of the hour despite strong job market. Further, stronger than expected Chinese economic numbers boosted the risk appetite and weighed on the dollar. Meanwhile, higher than expected Feb ISM services index has limited the downside in the dollar • The rupee future maturing on March 28 appreciated by 0.77% to 82.07 amid weaker dollar index and rise in foreign fund flows • The rupee is expected to appreciate further amid a rise in global risk appetite, weakness in dollar. Also, expectation of decline in US factory order numbers could be negative for dollar. US$INR has breached the key support of 50 day EMA support at 82.30 and slid below two week’s consolidation range of 82.30-83.00. Hence, as long as it trades below 82.30, the pair is likely to slip further towards 81.60-81.45.

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