ICICI Direct's currency report on USDINR
Spot Currency� �The rupee extended gains even as the RBI moved to raise interest rates for a second time in 2018. The RBI increased benchmark rates by 25 bps as expected, which will help the rupee as it could contain the widening rate differential between RBI and other major central banks, especially the Federal Reserve �� US $ rose mildly vs. major currencies even as Fed maintained the benchmark interest rates as expected . Fed emphasised on strength in the US economy that has cemented the prospects of a September rate hike and kept alive the possibility of a fourth rate hike in December.
Benchmark yield �Sovereign bonds rose sharply tracking the decline in yields even as RBI raised interest rates by 25 bps as expected �� US bonds declined sharply as benchmark yields ended above 3 . 0 %. However, the US $ witnessed muted action as investors remain cautious in the backdrop of simmering trade tensions between the US and its major trading partners.
Currency futures on NSE The dollar - rupee August contract on the NSE was at 68. 67 in the previous session. August contract open interest declined 0.51 % in the previous day �� We expect the US$INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.Intra-day strategy
related news EURINR is expected to trade appreciate today: Angel Broking Hold HCL Technologies; target of Rs 1050: ICICI Direct Hold NTPC; target of Rs 160: ICICI Direct| US$INR August futures contract (NSE) | View: Bearish on US$INR |
| Sell US$INR in the range of 68.65-68.71 | Market Lot: US$1000 |
| Target: 68.48 / 68.40 | Stop Loss: 68.83 |
| Support | Resistance |
| S1/ S2: 68.55 / 68.40 | R1/R2:68.70 /68.85 |
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Read More First Published on Aug 2, 2018 10:31 am
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