ICICI Direct, The rupee strengthened further and gained almost 15 paise despite weakening domestic equities and renewed state lockdowns.
May 17, 2021 / 11:20 AM IST
We expect the currency to trend broadly in the 73-76 range in the months ahead.
ICICI Direct’s currency report on USDINR
Spot Currency
The rupee strengthened further and gained almost 15 paise despite weakening domestic equities and renewed state lockdowns. Sustainability below 73.30 may bring further strength to the currency pair • The US dollar was under pressure on Friday after a report that US retail sales unexpectedly stalled in April and as fears of accelerating inflation receded.
Currency futures on NSE
Friday’s drop erases some of a two day rally in the US dollar after data on Wednesday showed US consumer prices increased after nearly 12 years. With the US dollar sustaining below 90.5, we feel the rupee is likely to appreciate towards 73 levels • The dollar-rupee May contract on the NSE was at Rs 73.45 in the last session. The open interest rose almost 1.5% for the May series.
Intra-day strategy
| US$ INR May futures contract (NSE) | View: Bearish on US$ INR |
| Sell US$ INR in the range of 73.43-73.47 | Market Lot: US$ 1000 |
| Target: 73.15/ 73.00 | Stop Loss: 73.61 |
| Support: 73.15/73.00 | Resistance: 73.50/73.60 |
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