Sell USDINR; target of 75.10 - 74.90 : ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

The downtrend in the dollar index halted and it saw a sharp reversal in the last session. The speculators had increased their US dollar shorts by an additional $5.2 billion last week, taking overall bearish exposure to $24.2 billion. Thus, it was highest in almost nine years. Hence, a round of covering cannot be ruled out • The rupee has depreciated and moved beyond 75 levels amid weakness in equities. We believe 75.50 levels will be crucial resistance for the rupee in coming sessions.

Currency futures on NSE

As the Dollar index saw sharp reversal from its two year’s low and started moving up, the rupee also depreciated. However, considering high Call base at 75.50 strike, current levels are crucial in the downtrend • The dollar-rupee contract on the NSE was at 75.45 in the last session. The open interest in August series remained almost flat while the next series saw addition of almost 10% shares.

Intra-day strategy 

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