ICICI Direct, Post Union Budget 2021, overall volatility declined and the trading range further contracted.
February 03, 2021 / 09:20 AM IST
ICICI Direct’s currency report on USDINR
Spot Currency
Post Union Budget 2021, overall volatility declined and the trading range further contracted. Positive domestic equites and huge inflows from FIIs would provide a cushion to the index • The Dollar index rose to a seven-week high as weakness in Euro continued after Coronavirus led to a drop in consumer spending. We feel EURUS$ would slip further, which will provide more boost to the Dollar index.
Currency futures on NSE
The US$ INR pair continued to hover around $ 73 post Budget also. A sharp sell-off in Euro would boost dollar due to which EM currencies are likely to depreciate. Sizeable Put base is also at 73 from where bounce is expected • The dollar-rupee February contract on the NSE was at Rs 73.22 in the last session. The open interest fell by 4.5% for the February series.
Intra-day strategy
| US$ INR Feb futures contract (NSE) | View: Bullish on US$ INR |
| Buy US$ INR in the range of 73.12-73.15 | Market Lot: US$ 1000 |
| Target: 73.25/ 73.35 | Stop Loss: 73.02 |
| Support: 73.00/73.10 | Resistance: 73.50/73.60 |
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