Sell USDINR; target of : 82.50 : ICICI Direct

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ICICI Direct's currency report on USDINR

In the past few days, the dollar has been moving in a tight range ahead of holidays and thin trading volume. In the last week of December volatility is usually low. Also, inflation data on Friday showed price pressure is ebbing in US, reinforcing expectations of smaller rate hikes from Fed. Yesterday US markets remained closed for Christmas holiday • Rupee future maturing on December 28 appreciated by 0.19% yesterday tracking strength in other Asian currencies and optimistic domestic market sentiments. Meanwhile, FII outflows and surge in crude oil prices prevented sharp gains in the rupee • The rupee is likely to appreciate today on the back of a rise in risk appetite in global markets and weakness in the dollar. Market sentiments improved on hopes of smaller rate hikes from the Fed and sentiments were even lifted after China announced that its requirement for travellers arriving in the country to go into quarantine will end in January raising hopes of wider economic reopening. However, a surge in crude oil prices may prevent sharp gains in the domestic currency.

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27122022 - currency