ICICI Direct, The rupee snapped its five day winning streak on Monday, closing 11 paise lower at 74.26 on the back of recovery in US dollar index•
August 10, 2021 / 08:53 AM IST
ICICI Direct’s currency report on USDINR
Spot Currency
The rupee snapped its five day winning streak on Monday, closing 11 paise lower at 74.26 on the back of recovery in US dollar index • The dollar steadied in early trading on Tuesday, trading near its four month highs of 93 levels following Friday’s strong nonfarm payrolls release as investor priced in an early tightening of monetary policy by the US Federal Reserve.
Currency futures on NSE
On the options front, the US$ INR has significant open interest at 74.25 Put strike. It suggests that US$ INR is likely to consolidate above 74.25 levels. However, positive domestic equities and easing oil prices will limit the depreciation of rupee • The dollar-rupee August contract on the NSE was at Rs 74.42 in the last session. The open interest rose almost 2% for the August series.
Intra-day strategy
| US$ INR August futures contract (NSE) | View: Bullish on US$ INR |
| Buy US$ INR in the range of 74.38-74.42 | Market Lot: US$ 1000 |
| Target: 74.60/ 74.70 | Stop Loss: 74.28 |
| Support: 74.30/74.20 | Resistance: 74.60/74.75 |
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