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

ICICI Direct's currency report on USDINR

Spot Currency

Despite the Dollar Index falling and moving below 90 levels, the rupee continued to remain above its sizeable Put base of 73.5. Towards the end, it gained 3 paise and ended near 73.6 levels • The Dollar Index fell below 90 levels for the first time since April 2018 as the Euro & Pound found strength. We feel the Dollar Index will remain under pressure.

Currency futures on NSE

Despite the weakening dollar, the US$INR found support near its highest Put base of 73.50. We believe these levels will be tough for the pair to breach on downsides and buying can be seen from here • The dollar-rupee December contract on the NSE was at 73.66 in the last session. The open interest increased sharply by another 15% in the December series contract.

Intra-day strategy