Sell USDINR; target of 68.50 - 68.40: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

In a volatile session, the rupee opened at 68.55 per dollar but soon recovered lost ground. It touched a high of 68.40, as the Budget was presented in Parliament. Easing crude oil prices and weakening of the greenback also helped the currency to gain • The US dollar rose in late trade on Friday as economic data came out better-than-expected. The major impetus in the dollar's drive higher was US Labor Department data that revealed non-farm payrolls rose by 224,000 jobs in June, the most in five months, and way ahead of analysts expectations of 160,000 jobs.

Benchmark yield

Sovereign bonds in India rallied after Finance Minister Nirmala Sitharaman said the government will borrow overseas to finance the budget deficit, a move that will ease pressure on local markets saturated with supply • US benchmark treasuries extend their slide sparked by June jobs report as no appetite emerges to fade the sell-off; 10-year yields top at 2.013% on strong futures volumes.

Currency futures on NSE

The dollar-rupee July contract on the NSE was at 68.61 in the previous session. July contract open interest increased 3.63% in the previous session • We expect the US$INR to find resistance at higher levels. Utilise the upsides in the pair to initiate short positions.

Intra-day strategy 

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