ICICI Direct's currency report on USDINR
Spot Currency
The rupee extended gains for a second session to end at highest level since July 17, 2019. It is expected to open with minor gains today tracking consolidation in US$ as well as overall subdued oil prices • The US dollar ended with minor gains as huge gains over British Pound were countered by losses against Euro. GBP has come under selling pressure as the new UK PM has vowed to lead the UK out of EU with or without an exit deal by October 31, 2019. Chinese Yuan is again depreciating and is approaching 6.90 levels even as investors await the outcome of US-China trade talks. Tomorrow’s Fed outcome is likely to provide direction to currencies in the near term.
Benchmark yield
Sovereign bond yields fell sharply to 6.41% as investors continue to price the possibility of sovereign bond issue. Domestic 10-year yields are likely to follow the US 10-year yields in the near term amid US policy meet outcome • US 10-year yields were unchanged at 2.07% on Monday. It remains in a range as investors remain on the edge in the backdrop of US Fed policy meet outcome.
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Currency futures on NSE
The dollar-rupee August contract on the NSE was at 68.97 in the previous session. Open interest increased 22.36% in the previous session • We expect the US$INR to meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions.
Intra-day strategy
US$INR August futures contract (NSE)View: Bearish on US$INRSell US$ in the range of 68.98 -69.02Market Lot: US$1000Target: 68.75 / 68.65Stop Loss: 69.17SupportResistanceS1/ S2: 68.80 / 68.70R1/R2:69.0 / 69.15Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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