ICICI Direct Despite the ongoing risk on momentum in most emerging markets, Indian equities paused and saw some profit booking. Depreciation in the rupee can be attributed to that.
ICICI Direct's currency report on USDINR
Spot Currency
The rupee remained range bound and ended almost flat despite a sharp rally in equities. Despite significant inflows seen in the last couple of days in equities, a range bound to depreciating move of the currency indicates ongoing concerns regarding the economy recovery • US dollar index rose 0.3% on Friday to 96.70 but stayed on track for a 1.4% weekly decline. A weaker dollar comes as a relief to emerging markets while decline in the dollar will help support energy and other commodity prices. In the process, it will reduce deflation risk.
Currency futures on NSE
The dollar-rupee contract on the NSE was at 75.80 in the last session. The open interest declined almost 4.5% in the June series while it increased almost 14% in the July series • Despite the ongoing risk on momentum in most emerging markets, Indian equities paused and saw some profit booking. Depreciation in the rupee can be attributed to that.
Intra-day strategy
| US$INR Jun futures contract (NSE) | View: Bearish on US$INR |
| Sell US$ in the range of 75.83-75.87 | Market Lot: US$1000 |
| Target: 67.95/ 67.75 | Stop Loss: 76.02 |
| Support: 75.55/75.40 | Resistance: 76.02/76.15 |
