ICICI Direct expects USDINR to meet resistance at higher levels. Utilise upsides in the pair to initiate short positions.
ICICI Direct's currency report on USDINR
Spot Currency
The rupee extended losses on Wednesday as strength in the US$ against majors and nervousness due to recent events like the RBI governor’s resignation and domestic election outcome weighed. However, it is expected to open stronger today due to buoyed global risk - on sentiment and overnight dollar losses. US$ pared gains as the Euro and GBP recovered sharply yesterday . Investors shall await the outcome of ECB’s monetary policy meeting ahead of the Fed’s policy meeting outcome. Decline in dollar could see short squeeze in major currencies like Yen & GBP.
Benchmark yield
Government bonds gained on Wednesday due to expectations of lower inflation ahead of data and positive foreign inflows in the domestic debt segment • US treasury yields rose mildly as investors booked profit in the recent debt rally . However, a clear trend is expected to emerge post the Fed’s December monetary policy meeting in the backdrop of weakening US data.
Currency futures on NSE
The dollar - rupee December contract on the NSE was at 72. 11 in the previous session. December contract open interest increased 4. 31 % in the previous session • We expect the US$INR to meet resistance at higher levels. Utilise upsides in the pair to initiate short positions.
GET INDIAN STOCK MARKET RECOMMENDATIONS BY THE BEST FINANCIAL ADVISORY RIPPLES RESEARCH HOUSE AND SUBSCRIBE OUR DAILY INTRADAY TIPS FOR FREE FROM >> Call Put Option Tips
No comments:
Post a Comment