Sell USDINR; target of 73.90 - 73.85 : ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

The rupee depreciated after making lows near 73.50 and moved back to close near 73.80 levels despite dollar weakness. However, we believe that higher levels will remain a shorting opportunity for the currency pair considering prevailing risk on sentiments across the globe • The US Dollar Index has dropped to further lows in recent trade, briefly dipping below the 91.00 level for the first time since April 2018.

Currency futures on NSE

US$INR December future reverted from lows in the last session despite dollar weakening and continued FII flows in equities. We believe higher levels of 74.20 should act as resistance and these can be utilised for shorting the pair • The dollar-rupee December contract on the NSE was at 74.03 in the last session. The open interest rose 13.6% for the December series contract.

Intra-day strategy