ICICI Direct expect the USDINR to meet resistance at higher levels. Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
Spot Currency
he rupee was almost unchanged as a rise in domestic equities is helping it offset pressure from redemption in domestic markets as well as a broad based USD rally The USD ended with mild positive gains as a non - event Fed May monetary policy meeting reiterated recent growth in US inflation. The Fed said inflation is almost near goals cementing a rate hike the Fed is widely expected to raise interest rates by 25 bps in the June policy meeting Major currencies continue to bear the brunt from a recent reversal in the USD.
Benchmark yield
Sovereign bonds reversed losses as yields cooled mildly. Overall, markets would keenly watch further moves in crude oil prices as well as domestic monsoon development US 10 - year ended slightly higher at 2. 97 % post the Fed’s May monetary policy meeting. US interest rate hike prospects remain firm owing to the recent surge in inflation and receding geopolitical concerns.
related news
Currency futures on NSE
The near - month dollar - rupee May contract on the NSE was at 66. 87. The May contract open interest increased 5. 40 % from the previous day We expect the USDINR to meet resistance at higher levels .Utilise upsides in the pair to initiate short positions.Intra-day strategy
| USDINR May futures contract (NSE) | View: Bearish on USDINR |
| Sell USDINR in the range of 66.93 - 66.99 | Market Lot: USD1000 |
| Target: 66.82 / 66.70 | Stop Loss: 67.11 |
| Support | Resistance |
| S1/ S2: 66.80 / 66.60 | R1/R2:67.05 /67.15 |
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.