ICICI Direct's currency report on USDINR
Spot Currency
The rupee tumbled to the lowest level in more than four months despite a decent recovery in equities • The rupee fell around 1.2% to 74.55 per dollar, the weakest since mid November 2020. The central bank said on Wednesday it will buy Rs 1 trillion ($14 billion) of bonds in the secondary market this quarter, in addition to its existing liquidity operations.
Currency futures on NSE
The rupee plunged to a four month low due to primary liquidity infusion via bond and rising Covid-19 cases that have created uncertainty. This may imply tapered money growth, which suggests this will put depreciation pressure on the rupee • The dollar-rupee April contract on the NSE was at Rs 74.55 in the last session. The open interest increased 15% for the April series.
Intra-day strategy
| US$INR Apr futures contract (NSE) | View: Bullish on US$INR |
| Buy US$INR in the range of 74.55-74.60 | Market Lot: US$1000 |
| Target: 74.98/ 75.15 | Stop Loss: 74.40 |
| Support: 74.40/74.20 | Resistance: 74.98/75.15 |
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