ICICI Direct expects Open interest fell 2.8% in the previous session • Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
Spot Currency
The rupee on Friday appreciated by 15 paise to end at 71.35 against the US dollar on Friday as the Economic Survey 2019-20 predicted bullish growth figures for the next financial year. However, post the Budget outcome traders are likely to book profits, which will keep in rupee move in check • Dollar index remained under pressure after the President declared public health emergency and suggested to avoiding going to China as coronavirus spread increased.
Benchmark yield
Indian bonds rose 0.66% and ended at 6.60 vs. 6.56 in the previous session. All eyes will be on the RBI monetary policy, which is lined up during the later part of the week • The yield on the 10-year US treasury note dropped to its lowest closing level in over three months after the spreading coronavirus caused airlines to cancel flights to China and the Federal Reserve did little to change investors' expectations that it could cut interest rates later in the year.
Currency futures on NSE
The dollar-rupee February contract on the NSE was at 71.56 in the previous session. Open interest fell 2.8% in the previous session • Utilise downsides in the pair to initiate long positions.
Intra-day strategy
| US$INR February futures contract (NSE) | View: Bulish on US$INR |
| Buy US$ in the range of 71.55-71.65 | Market Lot: US$1000 |
| Target: 71.85 / 72.00 | Stop Loss: 71.40 |
| Support | Resistance |
| Support: 71.47/71.35 | Resistance: 71.85/72.00 |
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