ICICI Direct expects USDINR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
Spot Currency The rupee continued to extend losses and ended sharply higher at 66 . 12 as higher crude oil prices as well as an increase in global as well as domestic yields weighed on sentiments • The US$ extended further gains and is comfortably trading at 90 . 30 levels against majors on expectation of inflation growth in the US as well as receding concerns over North Korea . Higher US yields may see the Fed hiking interest rates faster than expected . This could weigh on emerging currencies including the rupee.
Benchmark yield Sovereign bonds were spooked as a sharp rise in domestic yields have hit sentiments in domestic markets . Huge outflows in the debt markets have raised concerns on upcoming smooth sales as part of the government’s borrowing programme • US 10 - year yields were at almost four - year highs near 2 . 96 % as stronger crude oil prices as well as receding US - North Korea concerns have helped yields rally.
Currency futures on NSE The near - month dollar - rupee April contract on the NSE was at 66.12 . The April contract open interest increased 26.04 % from the previous day • We expect the US$INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions.
Intra-day strategy
| US$INR April futures contract (NSE) | View: Bullish on US$INR |
| Buy US$INR in the range of 66.00 - 66.06 | Market Lot: US$1000 |
| Target: 66.30 / 66.40 | Stop Loss: 65.88 |
| Support | Resistance |
| S1/ S2: 65.90 / 65.80 | R1/R2:66.10 /66.30 |
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