ICICI Direct expects Open interest rose 5.25% in the previous session • Utilise downsides in the pair to initiate long positions.
ICICI Direct's currency report on USDINR
Spot Currency
The rupee pared early gains to settle 5 paise down at 71.34 against the US dollar on Wednesday ahead of the release of key domestic macroeconomic data. However, as crude oil prices started reverting from lower levels, US$INR is likely to move higher • After falling for two days, the Dollar Index again moved to 99.00 levels as the market is printing fresh 2020 highs. This will keep emerging market currency moves in check.
Benchmark yield
The yield on 10-year bond rose 0.14% and ended at 6.48 yesterday compared to 6.47 • US treasury yields rose on Wednesday as hopes that a slowdown in the cases of COVID-19--the name for the novel disease originated in Wuhan, China in late 2019--sparked a global equity rally and weighed on haven demand.
Currency futures on NSE
The dollar-rupee February contract on the NSE was at 71.43 in the previous session. Open interest rose 5.25% in the previous session • Utilise downsides in the pair to initiate long positions.
Intra-day strategy
| US$INR February futures contract (NSE) | View: Bullish on US$INR |
| Buy US$ in the range of 71.35-71.45 | Market Lot: US$1000 |
| Target: 71.55 / 71.65 | Stop Loss: 71.25 |
| Support | Resistance |
| Support: 71.25/71.00 | Resistance: 71.60/71.70 |
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