ICICI Direct, The rupee continued to remain in a range despite strengthening dollar and rise in bond yields recently.
February 09, 2021 / 09:14 AM IST
ICICI Direct’s currency report on USDINR
Spot Currency
The rupee continued to remain in a range despite strengthening dollar and rise in bond yields recently. Continued FII buying in equities can be attributed to the current outperformance of the pair • The dollar index found some pressure at higher levels and moved towards 91. However, the downward move in the dollar comes despite the rise in US bond yields, with the 10-year benchmark gradually approaching the 1.20% level, area last visited in March 2020.
Currency futures on NSE
The US$ INR spot has moved below 73 levels once again and further declines can be seen if it sustains below these levels. However, continued strength shown by dollar remains a concern • The dollar-rupee February contract on the NSE was at Rs 73.10 in the last session. The open interest increased almost 8% for February series.
Intra-day strategy
| US$ INR Feb futures contract (NSE) | View: Bearish on US$ INR |
| Sell US$ INR in the range of 73.18-73.22 | Market Lot: US$ 1000 |
| Target: 73.10/ 73.00 | Stop Loss: 73.31 |
| Support: 72.95/72.85 | Resistance: 73.30/73.50 |
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