Buy USDINR; target of: 74.90 – 75.00: ICICI Direct

Currencies

ICICI Direct, The rupee continued to fall against the US dollar as the Dollar index continued to trade higher. Elevated crude oil prices and weakness in domestic equities kept the pressure intact•

July 02, 2021 / 09:45 AM IST

ICICI Direct’s currency report on USDINR

Spot Currency

The rupee continued to fall against the US dollar as the Dollar index continued to trade higher. Elevated crude oil prices and weakness in domestic equities kept the pressure intact • The dollar index moved to a fresh two and a half month high as stronger-than-expected US initial claims were reported.

Currency futures on NSE

The US$ INR continued to move higher as the Dollar index moved to two-month highs. Major writing is happening in ATM and OTM Puts indicating a move towards 75 is expected for the pair • The dollar-rupee June contract on the NSE was at Rs 74.75 in the last session. The open interest rose 4.4% for the July series.

Intra-day strategy 

US$ INR July futures contract (NSE) View: Bullish on US$ INR
Buy US$ INR in the range of 74.65-74.70 Market Lot: US$ 1000
Target: 74.90/ 75.00 Stop Loss: 74.55
Support: 74.30/74.50 Resistance: 74.90/75.20

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