Sell USDINR; target of 71.90 – 71.80: ICICI Direct
ICICI Direct’s currency report on USDINR
The rupee managed to rise 20 paise and closed at 71.66 in the last trading session, in line with other Asian currencies as crude oil prices fell another 2% • The Dollar Index rose marginally and ended at 99 levels amid risk-off sentiment as focus stays on Covid-19. However, after consolidation near this level for a couple of days, it is likely to test 100 levels, which will keep emerging market currency move in check.
The yield on the 10-year bond rose 0.25% and ended at 6.35 compared to 6.33 in its previous session • US treasury bonds fell another 1% on Wednesday as the accelerating spread of COVID-19 outside China kept investors on the edge and drove stocks lower for a fifth day.
Currency futures on NSE
The dollar-rupee February contract on the NSE was at 71.9 in the previous session. Open interest rose 39.9% in the previous session • Utilise upsides in the pair to initiate short positions.
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