Buy USDINR; target of 73.20 – 73.30: ICICI Direct


ICICI Direct, The rupee remained largely range bound in the last trading session despite the weakness seen in the Dollar index.

March 15, 2021 / 09:25 AM IST

ICICI Direct’s currency report on USDINR

Spot Currency

The rupee strengthened for a third consecutive day and gained almost 12 paise despite weakening domestic equities. We believe the rupee may witness some weakness from here onwards considering fresh rise in US bond yields and strength in the Dollar index • The US dollar ended higher on Friday due to a fresh spike in US Treasury yields. The greenback gave up nearly half of its earlier gains after yields retreated from their highs late in the session.

Currency futures on NSE

The Dollar index gained some strength in the last session but failed to move above 92 levels. A move above 92 may trigger fresh upside momentum in the dollar index, which may cause fresh round of depreciation in the US$ INR pair • The dollar-rupee March contract on the NSE was at Rs 72.90 in the last session. The open interest increased by almost 4% for the March series.

Intra-day strategy 

US$ INR Mar futures contract (NSE) View: Bullish on US$ INR
Buy US$ INR in the range of 72.88-72.92 Market Lot: US$ 1000
Target: 73.20/ 73.30 Stop Loss: 72.75
Support: 72.70/72.60 Resistance: 73.20/73.40