ICICI Direct's currency report on USDINR
Spot Currency
The rupee witnessed a further bounce and managed to gain almost 18 paise in the last session to close near 73.36 levels against the US dollar • The dollar index moved below 91 levels once again amid softening bond yields. US 10-year yields have remained largely below 1.40% level after testing the 52-week high on Friday.
Currency futures on NSE
The US$INR March futures fell further as the dollar index started weakening once again while risk currencies exhibited some bounce after a sharp decline was seen on Friday. However, we expect US$INR futures to find support near 73.50 levels in the short-term • The dollar-rupee March contract on the NSE was at Rs 73.60 in the last session. The open interest remained almost unchanged in the March as well in April series.
Intra-day strategy
| US$INR Mar futures contract (NSE) | View: Bullish on US$INR |
| Buy US$INR in the range of 73.48-73.52 | Market Lot: US$1000 |
| Target: 73.70/ 73.80 | Stop Loss: 73.38 |
| Support: 73.30/73.50 | Resistance: 74.50/74.90 |