Buy USDINR; target of 65.38 - 65.46: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

Rupee ended sharply lower losing almost 0.49 % against the US $ as a sharp rise in crude oil prices coupled with global geopolitical tensions weighed on emerging currencies including the rupee • The US $ was almost unchanged against majors . However, a rise in crude oil prices and global geopolitical tensions rattled markets. Crude oil prices rose to almost four - year highs with Brent testing $ 72 / bl while the US president warned Russia on Syria’s alleged chemical attacks. We expect the JPY to remain supported over a rise in global concerns while the US$ could remain on the back foot.

Benchmark yield  

Sovereign bonds extended declines as yields rose sharply amid concerns over a spurt in crude oil prices and simmering global geopolitical concerns • US 10 - year yields declined to 2 . 78 % as the US President warned Russia over alleged use of chemical weapons by Syria.

Currency futures on NSE The near - month dollar - rupee April contract on the NSE was at 65. 37. The April contract open interest declined 1. 63 % from the previous day • We expect US$INR to find supports at lower levels. Utilise downsides in the pair to go long in US$INR.

Intra-day strategy

US$INR April futures contract (NSE)	View: Bullish on US$INR
Buy US$INR in the range of 65.20 - 65.24	Market Lot: US$1000
Target: 65.38 / 65.46	Stop Loss: 65.07
Support	Resistance
S 1/ S 2: 65.20 / 65.10	R 1/R 2:65.40 /65.55

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