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 CurrencyThe rupee recovered some of its losses yesterday. However, it is expected to open lower today on account of the changing geopolitical dynamics on North Korea • The US $ ended on a slightly lower note as the US President’s displeasure over the outcome of China trade talks as well as the shadow over his meeting with the North Korean leader weighed on the dollar . JPY gained against US $ as well as other majors as Donald Trump’s statement on doubts over his planned summit with the North Korean leader has supported safe haven appeal of JPY.
Benchmark yieldSovereign bonds ended almost unchanged on the back of a cautious tone ahead of US Fed monetary policy meeting yesterday • US 10 - year yields were unchanged as Fed meeting minutes showed a mixed signal . Although rate hike prospects remain firm, concerns over equality in job opportunities as well as concerns over financially struggling American citizens failed to lift yields.
Currency futures on NSE The near - month dollar - rupee May contract on the NSE was at 68. 09 in the previous session. The May contract open interest declined 4.40 % in 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 May futures contract (NSE) | View: Bullish on US$INR |
| Buy US$INR in the range of 68.12 - 68.18 | Market Lot: US$1000 |
| Target: 68.35/ 68.45 | Stop Loss: 68.00 |
| Support | Resistance |
| S1/ S2: 68.0 / 67.90 | R1/R2:68.30 /68.40 |