Sell USDINR; Target Of 67.75 - 67.65: ICICI Direct

Jan 06, 2017


You can also follow us for daily intraday updates click here to

ICICI Direct's report on currency Debt market   Government bonds witnessed marginal selling after sharp buying was seen in the penultimate session ahead of weekly auction. However, we  believe buying momentum will continue  in bonds in anticipation of a rate  cut by the central bank in February.

The benchmark 6.97% 2026 bond yield remained almost unchanged at  6.39% from 6.38% in the previous day  • Yield on the US 10-year yield declined sharply from 2.44% to 2.34% on Thursday   Forex (US$/INR)   The rupee rose to a near one-week high against the dollar, as banks sold the greenback and local shares edged higher, easing concerns about  capital outflows.

The US$ index slipped against a basket of major currencies after US  inflation and unemployment data failed to reverse a downtrend that  followed some of the biggest gains on record for China's yuan. US treasury debt yields slipped as investors grew uncertain about the incoming Trump administration   US$/INR derivatives strategy: Buy January Contract   In the currency futures market, the most traded dollar-rupee January contract on the NSE ended at 68.11.

The January contract open interest rose by 6.01% from the previous day • February contract open interest rose 27.99% from previous day • We expect the US$ to find resistance at higher levels. Utilise upsides in the dollar to go short on the US$INR pair.



No comments:

Post a Comment

Designed with by Way2themes | Distributed by Blogspot Themes