ICICI Direct's currency report on USDINR
Spot Currency
Due to a sharp sell-off in domestic equities and extension of restriction in few states, the rupee paused its upward trend and ended flat for the day • The Dollar index further fell marginally and remained at a fresh two and a half month low as inflation concerns weighed on the dollar ahead of US consumer price data.
Currency futures on NSE
A sell-off in the Dollar index and weakness in domestic equities pushed the rupee to remain flat for the day. However, writing activity increasing in US$INR Puts, we feel a bounce towards 74 levels cannot be ruled out • The dollar-rupee April contract on the NSE was at Rs 73.54 in the last session. The open interest rose almost 1.5% for the May series.
Intra-day strategy
| US$INR May futures contract (NSE) | View: Bullish on US$INR |
| Buy US$INR in the range of 73.48-73.51 | Market Lot: US$1000 |
| Target: 73.70/ 73.80 | Stop Loss: 73.35 |
| Support: 73.50/73.30 | Resistance: 73.85/74.00 |
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