Buy USDINR; target of: 75.40 - 75.60: ICICI Direct

ICICI Direct's currency report on USDINR

Spot Currency

The rupee fell further and made a new one year low as it violated 75 levels. Pandemic induced lockdown and shortage of vaccine add more pressure along with the excess liquidity likely to float in the system due to GSAP • The dollar index moved to a three-week low on dovish Fed comments and recovery in US equites.

Currency futures on NSE

Depreciation in the rupee continued but writing positions are stuck in 75 strike Call, which is likely to get triggered while a further move towards 75.60 is expected. However, post the GSAP buying, rupee should cool-off • The dollar-rupee April contract on the NSE was at | 75.22 in the last session. The open interest fell 9.8% for the April series.

Intra-day strategy 

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