Buy USDINR; target of: 73.75 - 73.85: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

The rupee remained largely range bound in the last session after witnessing sharp appreciation on Monday. Positive domestic equities and huge inflows by FIIs kept the positive trend intact • The US Dollar index remained under pressure and largely traded below 90.80 levels. The ongoing up move in the pound as well as Euro ahead of Brexit kept the dollar index under pressure.

Currency futures on NSE

As the Dollar index saw a range bound move, the US$INR also remained largely range bound. However, considering the significant Put base placed near 73.50, a round of recovery is expected from these levels • The dollar-rupee December contract on the NSE was at 73.67 in the last session. The open interest fell marginally by 0.8% in the December series contract.

Intra-day strategy