ICICI Direct's currency report on USDINR
Spot Currency
The rupee stayed muted in the first half. However, as a sharp move was seen in the Dollar index and a sell-off in domestic equities from higher levels, the rupee depreciated by 23 paise and ended near 73.25 level • The Dollar index continued to remain firm and moved to a three and a half month high against Euro and almost nine month high against the Yen as higher bond yields, expectations of faster economic normalisation from the pandemic in US put the dollar at an advantage.
Currency futures on NSE
The rupee remained above 73.30 levels as the Dollar index moved above 92 levels. We feel the rupee would continue to depreciate and a move towards 73.6 cannot be ruled out • The dollar-rupee March contract on the NSE was at | 73.39 in the last session. The open interest increased marginally by 4.6% for the March series.
Intra-day strategy
| US$INR Mar futures contract (NSE) | View: Bullish on US$INR |
| Buy US$INR in the range of 73.20-73.22 | Market Lot: US$1000 |
| Target: 73.50/ 73.70 | Stop Loss: 73.05 |
| Support: 72.95/72.80 | Resistance: 73.50/73.90 |
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