ICICI Direct Despite the ongoing risk on momentum seen in most emerging markets, Indian equities paused and witnessed some profit booking. Deprecation in the rupee can be attributed to that.
ICICI Direct's currency report on USDINR
Spot Currency
After a strong opening, the rupee weakened further against the US$ and closed almost 10 paise lower at 75.58. Despite significant inflows in the last couple of days in equities, depreciation of currency indicates ongoing concerns regarding the economy recovery • The US dollar continued to weaken and hovered below 97.60 levels amid appetite for risker assets. Increased stimulus by the ECB helped the Euro to gain further as it expanded its purchase programme by €600 billion.
Currency futures on NSE
The dollar-rupee contract on the NSE was at 75.72 in the last session. The open interest declined by almost 3.4% in June series while it has increased almost 18% in the July series • Despite the ongoing risk on momentum seen in most emerging markets, Indian equities paused and witnessed some profit booking. Deprecation in the rupee can be attributed to that.
Intra-day strategy
| US$INR Jun futures contract (NSE) | View: Bullish on US$INR |
| Buy US$ in the range of 75.43-75.47 | Market Lot: US$1000 |
| Target: 75.75/ 75.90 | Stop Loss: 75.32 |
| Support: 75.32/75.15 | Resistance: 75.75/76.95 |
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