Buy USDINR; target of 75.95 - 76.05: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

After a strong opening, the rupee weakened following profit booking in equity markets and closed around 75.72. However, rupee June futures closed at 75.62 levels. The rupee has traded in the range of 75.30-76.30 for more than a month • The dollar index has remained weak and hovered below 97 levels. The Euro is moving cautiously higher against the US$ for a third straight session and is trading around 1.13 levels. It may witness some retracement in the coming sessions. Better than expected PMI data across the world helping EM currencies to remain strong.

Currency futures on NSE

The rupee found support near 75.50 and saw some up move amid weakness in equity markets. We believe that immediate support for the rupee is placed around 75.40 and rupee should be bought on declines • The dollar-rupee contract on the NSE was at 75.65 in the last session. The open interest declined almost 6% in the June series but increased 1.5% in the July series ahead of the settlement.

Intra-day strategy 

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