Sell USDINR; target of 73.55 - 73.45: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

US$INR futures traded flat to positive on Tuesday as the dollar index remained steady against a basket of major currencies. However, stronger domestic equities capped gains in the pair • The dollar index dropped earlier on expectations the Federal Reserve will maintain its downbeat stance on the US economy as it grapples with the pandemic, and keep US interest rates near zero for some time.

Currency futures on NSE

The Fed will begin a two-day meeting. Markets expect the US central bank to affirm its current zero-interest-rate policy over the next three years, which should keep further pressure on the dollar • The dollar-rupee September contract on the NSE was at 73.71 in the last session. The open interest in the September series increased 3.26% while it also increased by 10.15% in the next series.

Intra-day strategy 

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